Input Tax Credit (ITC) Management

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 ITC allows registered taxpayers to offset the GST paid on inputs (goods or services purchased) against the GST collected on sales, thereby reducing the tax payable to the government.  

•  Assessing which purchases qualify for ITC under GST rules, ensuring the goods and services are used for business purposes and the tax is paid to the government.  
• Matching purchase registers and accounting records with supplier filings (GSTR-2B) on the GST portal to identify discrepancies and avoid claim rejections. 
•  Ensuring GST returns are filed timely and the ITC claimed aligns with the returns submitted by suppliers to avoid penalties or interest. 
•  Recognizing expenses and supplies that are not eligible for ITC claim as per Section 17(5) of the CGST Act. 
•  Tracking payments to suppliers and reversing ITC if payments are not made within 180 days, as per GST rules, to remain compliant. 
•  Assisting with claiming ITC refunds in specific cases (like exports) and adjusting ITC correctly across IGST, CGST, and SGST. 

• Reduces overall tax burden by avoiding double taxation
• Improves business cash flow and liquidity
• Enhances accuracy in GST compliance and reporting
• Minimizes risk of tax demand, penalties, and audits
• Ensures optimal tax credit utilization maximizes profitability