Input Tax Credit

Input Tax Credit (ITC) is a tax benefit under the GST regime that allows businesses to reduce their tax liability by claiming credit for the GST paid on goods and services purchased for business purposes. This mechanism avoids double taxation by ensuring that the tax is levied only on the value added at each stage of the supply chain. Businesses must comply with specific conditions, such as holding GST-compliant invoices and ensuring proper filing of returns, to avail of ITC.

Timeline

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FAQs

Document Required

GST Registration Certificate

PAN Card of Business/Entity

Tax Invoices or Bills of Supply

Payment Proof for the Invoices (Bank Statements)

GST Returns (GSTR-2A, GSTR-2B, GSTR-3B)

Input Tax Credit Ledger

Purchase Register

Sales Register

GST Returns (GSTR-1, GSTR-2A, GSTR-2B, GSTR-3B)

Debit/Credit Notes (if applicable)

Export Invoices (for zero-rated supplies)

LUT/Bond for Export Without Payment of Tax

Shipping Bills or Proof of Export

GST Payment Challans (if applicable)

Process Timeline

GST Registration

Ensure the business is registered under GST.

Obtain GST-Compliant Invoices

Purchase goods or services from GST-registered suppliers and collect proper invoices.

Verify Supplier Compliance

Ensure that suppliers have filed their GST returns and reported the transaction.

Receive Goods or Services

ITC can only be claimed after the receipt of goods or services.

Match Input Details

Cross-check details in GSTR-2A or GSTR-2B for matching invoices.

File GST Returns

Declare the ITC claim while filing GSTR-3B or the applicable return form.

Offset Liability

Use the claimed ITC to pay GST liability on sales.

Maintain Records

Retain invoices, records, and supporting documents for audits.

Find the Perfect Fit for Your Budget

Choose from our range of flexible pricing options that cater to your specific needs.

₹4,999

Basic Plan

Get Started

Initial consultation to assess eligibility for Input Tax Credit (ITC) based on business transactions.

Review and verification of purchase invoices and GST returns to ensure eligible ITC claims.

Guidance on claiming ITC on purchases of goods and services.

Basic reconciliation of GSTR-1 and GSTR-3B to identify and claim ITC discrepancies.

Support for claiming ITC on GST paid for business inputs, capital goods, and services.

Email support for 1 month to address queries related to ITC claims.

Completion of ITC review and filing within 7-10 working days.

₹9,999

Standard Plan

Get Started

Full review of purchase invoices and sales records to determine eligible ITC under GST.

Detailed analysis and reconciliation of GSTR-1, GSTR-3B, and GSTR-9 for any discrepancies or missed ITC claims.

Assistance with claiming ITC for cross-border transactions (imported goods/services) and reverse charge mechanism (RCM).

Handling of ITC issues and support for any challenges during audits or assessments by tax authorities.

Guidance on ITC optimization strategies to reduce GST liabilities.

Email and phone support for 2 months post-service for resolving ITC-related queries.

Processing and resolution within 5-7 working days.

₹14,999

Pro Plan

Get Started

Comprehensive review of all purchase invoices, GST returns, and input/output tax credits for the entire financial year.

Reconciliation and detailed analysis of GSTR-1, GSTR-3B, GSTR-9, and other supporting documents to ensure maximized ITC claims.

Full support for handling input tax credit disputes and audits, including representation with tax authorities if required.

Strategy formulation for ITC optimization, addressing block credits, and preventing disallowed claims.

Assistance with ITC reversal for ineligible claims and adjustments based on business changes.

Detailed consultation and reporting on ITC management for businesses with complex operations or large volumes of transactions.

Email, phone, and on-site support for 3 months post-service.

Priority processing and resolution within 3-5 working days.

Ensure the business is registered under GST.

Frequently Asked Questions

Find answers to commonly asked questions about our products and services.

What is Input Tax Credit (ITC)?

ITC allows businesses to claim credit for the GST paid on purchases of goods or services used for business purposes.

Who is eligible to claim ITC?

GST-registered businesses engaged in taxable supplies are eligible to claim ITC, provided they meet the necessary conditions.

Are all goods and services eligible for ITC?

No, certain goods and services, such as those used for personal purposes, exempt supplies, or motor vehicles for personal use, are not eligible for ITC.

Can ITC be claimed on goods used for exempt supplies?

No, ITC cannot be claimed on goods or services used to produce exempt supplies.

What documents are required to claim ITC

A GST-compliant invoice, proof of receipt of goods or services, and evidence that GST has been paid to the government are required.

Is ITC available for capital goods

Yes, ITC can be claimed on capital goods if they are used for business purposes and taxable supplies.

What happens if the supplier does not file their GST returns

If the supplier fails to file returns or pay GST, the recipient may not be able to claim ITC for the corresponding transaction.

Can ITC be carried forward

Yes, unutilized ITC can be carried forward and adjusted against future GST liabilities.

Submit Your Request

Input Tax Credit

Get Professional Support

Document Required

Process Timeline

GST Registration

Obtain GST-Compliant Invoices

Verify Supplier Compliance

Receive Goods or Services

Match Input Details

File GST Returns

Offset Liability

Maintain Records

Find the Perfect Fit for Your Budget

₹4,999

₹9,999

₹14,999

Frequently Asked Questions

Submit Your Request