CBIC Circular No. 260/06/2026-GST Clarifies Credit Distribution, Reversals and Refund Computation on ISD model

The circular clarifies that each separately registered business vertical or place of business receiving input service invoices for distribution must obtain ISD registration. The ISD distributes credit, while recipients determine eligibility and make applicable reversals. It also excludes Rule 54(1A) credit-transfer amounts from turnover and net ITC calculations for specified refund purposes.