ISD — distributing common input-service GST credit

Some GST credit is on services your whole business uses, not one branch — the statutory audit, your accounting software, head-office rent. If you hold more than one GSTIN, that common credit is meant to be shared across them in proportion to turnover. The mechanism is the Input Service Distributor (ISD), and since April 2025 distributing common input-service credit through an ISD registration is mandatory for multi-GSTIN businesses. Finocket's ISD register records the common credit once and splits it across your GSTINs/branches exactly.

Record a distribution

From GST → Returns, open ISD credit distribution and fill in:

• Return period (YYYY-MM) and the source reference — the input-service invoice the credit came from.
• Credit per tax head — the IGST, CGST and SGST on that common service.
• Branches — a row per GSTIN. Use Add my companies to pull in the GSTINs you already run in Finocket.

Turnover split or manual

By default the split is pro-rata by turnover: enter each branch's turnover for the period and the ratios compute themselves. Switch on manual split to enter the weights yourself. Either way, the preview shows the exact per-branch amounts before you commit.

Exact to the paise

For each tax head the per-branch shares add back to the total to the paise — no rounding leak. When a split leaves a last paisa over (three branches at a third of an odd amount, say), that paisa goes to the largest-ratio branch, deterministically. So the credit you distribute always equals the credit you recorded.

The distribution journal

Press Distribute and Finocket posts a balanced journal that moves the distributed credit out of your GST-Input pool into an ISD ITC Distributed ledger — debits equal credits, so your trial balance still foots to zero. The register keeps the full per-branch, per-head breakdown your CA needs. A distribution posts once: pressing Distribute again on the same row does nothing, so the credit is never moved twice.

Because Finocket keeps one set of books per company, the journal records your own aggregate movement; the matching entries in each recipient branch's own books are outside this single-company view. Verify the figures with your CA before filing — Finocket prepares, it does not file.

Access & control

Owners and assistants record and distribute; an invited accountant sees the register read-only. Requires the GST module.

Related: Expenses & input tax credit, Reports & GST filings.