Input Service Distributor - Anyone Implemented ? Working on It?

ERPNext India Compliance
1

Background

A Head Office incurs certain expenses which is billed centrally but the benifit of the same is enjoyed by branches as well.
Example for services like audit, ERP licenses, IT subscriptions, consultancy —may be billed centrally but benefit is enjoyed by multiple branches . In this scenerio the Input credit (GST) for such expenses can be passed on to those branches by HO . The HO here is called Input Service Distributor (ISD) , by this mechanism HO would distribute the credit proportionally using ISD Invoices, which are then reflected in GSTR-6.

The distribution formula prescribed under GST rules is:

C1 = C × (T1 / T) Where C = total ITC to be distributed, T1 = turnover of the specific branch, T = total turnover of all recipient branches

Issue

ERPNext does not support ISD out of the box. There is no:

  • Way to flag a Purchase Invoice as an ISD invoice

  • Automated distribution mechanism using the turnover formula

  • ISD Invoice generation compliant with Rule 54

  • GSTR-6 report or JSON export

Questions for the community

  1. Has anyone implemented ISD functionality in ERPNext — either through customization or a third-party app?

  2. How are you currently handling the turnover-based distribution calculation — is it automated or manual?

  3. Has anyone built a GSTR-6 report or JSON export within ERPNext?

  4. Any experience, partial implementations, or even thoughts on the right approach would be helpful.

  5. Happy to share our detailed functional spec with anyone working on this.

2

Hi @Nsuregrowth

Distributed Cost center is the solution which can be achieved by working with

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It is under development. You can track progress here: