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First Hand Holdings offers GST Input Tax Credit Reconciliation from Rs.2899/- per year
Overview
GST Input Tax Credit Reconciliation

GST is an indirect tax levied on goods and services based on the principle of value addition. Hence, the levy of tax is based on the value added at every stage of the supply chain until the product or carrier reaches the ultimate consumer. In such a tax system, to negate the cascading impact of the tax, there exists a means to set of taxes paid on procurement of raw materials, consumables, plant and machinery, equipment, services, etc., that are used for the manufacturing or supply of items and services. This factor used to offset the tax liability is known as input tax credit.

Input Tax Credit

Under GST, each person having a GST registration in the supply chain takes part in the process of controlling, collecting GST tax and remitting the amount collected. However, to avoid double taxation and cascading effect of tax, input tax credit is provided as a means to set off tax paid on procurement of raw materials, consumables, goods or services that was used in the manufacturing and supply and sale of goods or services.

By using the input tax credit mechanism, businesses are able to achieve neutrality in the incidence of tax and ensure that such input tax element does not enter into the cost of production or cost of supply of goods and services

Eligibility for Claiming Input Tax Credit

Input tax credit can be claimed only by a person having GST registration and based on proper documentation and filing of GSTR-2 returns. The following documentary requirements must be satisfied by a taxpayer for claiming input tax credit.

  • An invoice issued by the Supplier as per the GST Rules for Invoice; or
  • A debit note issued by a supplier; or
  • A bill of entry or any similar document; or
  • An ISD invoice or ISD credit note or any document issued by an Input Service Distributor.

In addition, the following conditions are also applicable for claiming input tax credit:

  • The taxpayer is in possession of a tax invoice or debit note issued by a registered supplier or other tax paying documents.
  • The taxpayer has received the goods and/or services.
  • The tax charged in respect of the supply has been actually paid to the account of the appropriate Government, in cash or through utilisation of available input tax credit.
  • The taxpayer has filed the the necessary GST filings.


Pricing
Pay as your grow

Basic

all inclusive fees

₹1299

  • Unlimited Users
  • Upto 500 Estimates
  • Upto 500 Invoices
  • Upto 500 Purchase Invoices
  • Upto 500 Purchase Orders
  • GSTR-3B Return Filing
  • GSTR-1 Return Filing
  • GSTR-4 Return Filing
  • GSTR-9 Return Filing
  • Import or Export to Excel
  • Phone, Chat & Email Support

Standard

all inclusive fees

₹2599

  • Unlimited Users
  • Upto 5000 Estimates
  • Upto 5000 Invoices
  • Upto 5000 Purchase Invoices
  • Upto 5000 Purchase Orders
  • GSTR-3B Return Filing
  • GSTR-1 Return Filing
  • GSTR-4 Return Filing
  • GSTR-9 Return Filing
  • Input Tax Credit Reconciliation
  • GSTN API Connect to File Directly
  • Import or Export to Tally
  • Phone, Chat & Email Support

Premium

all inclusive fees

₹5299

  • Unlimited Users
  • Unlimited Estimates
  • Unlimited Invoices
  • Unlimited Purchase Invoices
  • Unlimited Purchase Orders
  • GSTR-3B Return Filing
  • GSTR-1 Return Filing
  • GSTR-4 Return Filing
  • GSTR-9 Return Filing
  • Input Tax Credit Reconciliation
  • GST eWay Bill
  • GSTN API Connect to File Directly
  • Import or Export to Excel
  • Import or Export to Tally
  • Phone, Chat & Email Support
FAQs on Private Limited Company
What is GST input tax?
Input tax is the central tax (CGST), state tax (SGST), integrated tax (IGST) or cess paid by a person having GST registration on supply of goods or services. GST input tax also includes tax paid on reverse charge basis and IGST charged on import of goods. However, input tax does not include tax paid under composition levy.
Can GST paid on reverse charge basis be considered as input tax?
Yes. The definition of input tax includes the tax payable under the reverse charge.
Can input tax credit be claimed on lost or damaged goods?
No, a person cannot take input tax credit with respect to goods lost, stolen, destroyed or written off. In addition, input tax credit with respect to goods given as gifts or free samples are also not allowed.
How to avail ITC on goods or services used partly for business?
The input tax credit of goods or services attributable only to the purpose of business can be taken by registered person. The manner of calculation of eligible input tax credit is provided in GST rules.
Is input tax credit allowed only after matching?
No, input tax credit is allowed provisionally for two months. The supply details are matched by the system and discrepancies are communicated to concerned supplier and recipient. In case mismatch continues, the ITC taken would be reversed automatically.
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