Input Service Distribution (ISD) Mandate – Effective April 1, 2025! 🚀

The Government of India has announced the ISD (Input Service Distribution) mandate, requiring businesses to distribute ITC (Input Tax Credit) accurately among GST-registered entities.

Require the feature on Microsoft Dynamics 365 Finance & Operations for fully equipped to help businesses comply seamlessly with this requirement! ✅

🔹 Key Features will be Available in Dynamics 365 F&O:

✅ ISD Setups

• ISD GST registration configuration
• Location-based ISD setup
• Number sequencing for ISD invoices & credit notes
• Automated GST component distribution

✅ ISD Tax Journal Process

• Single-line provisioning for ISD GSTIN to recipient GSTIN
• Data entity support for ISD distribution import

✅ Reports for Compliance

• ISD Invoice generation
• ISD Credit Note reporting
• GSTR-6 reporting

With these capabilities, businesses can streamline tax credit distribution, enhance compliance, and reduce manual effort.

Similar feature Available in Business Central , we can take reference from there