NPCI issued a circular regarding the Implementation of ISD-GSTIN (Input Service distributor) option in URCS back-office system

Nov 13, 2025 | by TeamLease RegTech Legal Research Team

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Industry Specific ComplianceThe National Payments Corporation of India (NPCI) on November 12, 2025, issued a circular regarding the Implementation of ISD-GSTIN (Input Service distributor) option in URCS back-office system.

NPCI has operationalized requirements arising from Notification No. 16/2024-Central Tax dated August 06, 2024 regarding the Input Service Distributor (ISD) mechanism, effective from April 01, 2025.

To support this, NPCI engaged select member banks to understand system changes needed. Following consultations, a solution was finalized and accepted in a workshop held on July 24, 2025, and the necessary system enhancements have now been completed. The URCS back-office system is ready for deployment.

A new ISD/GSTIN update option will be available in URCS, enabling banks to choose whether their GST reporting is based on their regular GSTIN or ISD GSTIN. Any updates made will reflect in the monthly GST reports.

Timeline:

ISD/GSTIN updates must be completed before the 20th of each month to be included in that month’s GST report.

Example: An update on November 20, 2025 will reflect in the November GST report generated in early December.

Banks’ existing GSTIN details are already pre-configured. The new update option should be used only when opting for ISD; otherwise, current GSTIN-based reporting continues unchanged.

Go-Live:

The ISD-GSTIN update functionality becomes active in URCS from November 17, 2025.

Annexures:

Annexure A: Step-by-step procedure for updating ISD/GSTIN, with TAT.

Annexure B: Complete user manual including maker–checker process.

[Circular No. NPCI/UPI/OC No. 229/2026-2026]


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