GST Input Tax Credit Reconciliation
GST is an indirect tax levied on goods and services based on the principle of value addition. Here the levy of taxation is based on value-added at each stage of the supply chain. This levy continues until the product or service reaches the ultimate consumer. In such a tax system, to negate the tax's cascading effect, there is a means to set taxes paid on procurement of raw materials, consumables, plant and machinery, equipment, services, etc., that are used for the manufacturing or supply of goods and services. This element used to offset the tax liability is called an input tax credit.
GST input tax credit can be used to make GST payment by persons having GST registration. Automatically track input tax credit received and defaulted by suppliers.
It usually takes 5 to 7 working days.
- Session with TAXAJ Expert
- Prepare the Summary Report as per the data shared
- Reconcile the same with GSTR 2A
- Any & All Businesses registered under GST
- Purchase of Plan
- Expert Assigned
- Upload documents on vault
- Preparation & reconciliation of data from Actual with GSTR 2A
Invoices for the period.
Q. What is the eligibility for claiming GST 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 utilization of available input tax credit.
👉 The taxpayer has filed the the necessary GST filings.
Q. What are the Products or Services not eligible for Input Tax Credit ?