How to Set Up GST Input Service Distributor (ISD) in Logic ERP?
In this tutorial, we will explain how to configure an ISD (Input Service Distributor) branch and manage ISD-related accounting entries in Logic ERP. Let’s begin with the complete setup and posting process.
Create ISD Input GST Accounts
Open Setup New Account.
Create the following Input GST ISD accounts:
CGST Input ISD
SGST Input ISD
IGST Input ISD
While creating these accounts:
For CGST Input ISD, select ISD CGST from the GST Type dropdown.
For SGST Input ISD, select ISD SGST.
For IGST Input ISD, select ISD IGST.
Create ISD Control & Expense Accounts
Create an ISD Credit Distribution Control Account
Account Type: Current Assets
Create a Service Expense Account (e.g., Audit Fees Expense)
Configure ISD Branch
Open Setup Branches.
Create a new branch.
Set GST ISD Branch = True.
Enter all required GST and branch details correctly.
Save the branch.
Log in to the newly created ISD branch to continue.
Post Service Purchase Entry in ISD Branch
Go to Accounts → Journal Purchase Entry.
Ensure the ISD branch is selected.
Credit the party ledger from whom the service is purchased.
Enter:
Service amount
CGST / SGST / IGST exactly as per the invoice
Save the voucher.
The GST input credit is now posted to the ISD Input GST ledgers.
Pass ISD Distribution Voucher (Journal Normal)
The ISD branch cannot use GST credit directly. It must be transferred to other branches.
Open Journal Voucher – Normal.
Pass the ISD Distribution Entry to forward the GST input credit to the ISD Control Account.
Save the voucher.
Transfer Credit to Receiving Branches
Open Journal Voucher – Normal again.
Select the Receiving Branch.
Post the ISD distribution entry.
Save the voucher.
The GST credit is now transferred from the ISD branch to the respective branches.
Note: In this entry, the balance of your Control Account will be transferred to the Normal GST Input account of the second branch.
Verify Ledger Posting
Open Ledger Report.
Observe:
ISD Credit Distribution Control Account shows Nil balance.
Receiving branches show GST credit under their Input Tax Credit ledgers.
Configure Purchase Tax Types for ISD
Open Setup Purchase Tax Types.
Refresh any existing tax type for reference.
Create tax types for service expenses:
Define CGST Input ISD and SGST Input ISD
Set tax rate as 9% in Tax 1 and Tax 3
Set Use for GST = GST
Select GST Type as CGST / SGST
Create a separate tax type for IGST ISD
Save the configuration.
Setup Item Group & Group Wise Taxes
Item Group Setup
Open Setup Item Group
Refresh GST Taxes Group
Create a new group (e.g., Audit Expense 18%)
Allocate the service item to this group
Group Wise Taxes
Open Set Group Wise Taxes
Select Audit Expense 18%
Choose applicable tax region (CGST / SGST / IGST)
Refresh and assign the ISD tax types
Save the setup
Post Purchase Voucher
Open Purchase Voucher
Transact the service item
Press F2 (View Totals) to verify tax calculation
Save the voucher
Configure Journal Voucher for ISD
Two separate configurations are mandatory:
ISD Invoice Configuration
Open Journal Voucher Configuration
Create configuration: JV ISD Invoice
Set GST ISD Doc Type = ISD Invoice
ISD Distribution Configuration
Create another configuration: JV ISD Distribution
Set GST ISD Doc Type = ISD Distribution
Forward Input Tax to Control Account
Pass journal entry using JV ISD Invoice
Save the voucher
Open Ledger Report to verify:
Input tax credit is debited to the ISD Control Account
Pass ISD Distribution Entry
Use JV ISD Distribution
If an error appears stating:
“Only CGST and SGST distribution allowed for this branch”
