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.

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About This Plan

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.

Created by potrace 1.15, written by Peter Selinger 2001-2017


It usually takes 5 to 7 working days.

Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered

  • Session with TAXAJ Expert
  • Prepare the Summary Report as per the data shared
  • Reconcile the same with GSTR 2A
Who Should Buy
  • Any & All Businesses registered under GST
How It's Done

    • Purchase of Plan
    • Expert Assigned
    • Upload documents on vault
    • Preparation & reconciliation of data from Actual with GSTR 2A
Documents Required
  1. GSTIN Credentials.

  2. Invoices for the period.

How to make best use of GSTIN by taking benefit of Input Tax Credit.

Frequently Asked Questions:

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.

๐Ÿ‘‰ An invoice issued by the Supplier as per the GST Rules for Invoice; or

๐Ÿ‘‰ A debit note issued by a supplier; or

๐Ÿ‘‰ A bill of entry or any similar document; or

๐Ÿ‘‰ 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:

๐Ÿ‘‰ The taxpayer is in possession of a tax invoice or debit note issued by a registered supplier or other tax paying documents.

๐Ÿ‘‰ The taxpayer has received the goods and/or services.

๐Ÿ‘‰ 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.

๐Ÿ‘‰ The taxpayer has filed the the necessary GST filings.

Q. What are the Products or Services not eligible for Input Tax Credit ?

๐Ÿ‘‰ Motor vehicles, except when they are supplied in the course of business or used for providing taxable services like:
โ†’Transportation of passengers
โ†’Transportation of goods
โ†’Providing training on driving, fling, navigating such vehicles
โ†’Further supply of such vehicles or conveyance

๐Ÿ‘‰ Supply of goods and/or services in relation to food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where such inward supply of goods or services of a particular category is used by a registered taxable person for making an outward taxable supply of the same category of service

๐Ÿ‘‰ Membership of a club, health and fitness centre

๐Ÿ‘‰ Rent a cab, life insurance, health insurance, except where it is statutorily obligatory for an employer to provide such services

๐Ÿ‘‰ Travel benefits extended to employees on vacation such as leave or home travel concession

๐Ÿ‘‰ Goods and/or services received by the principal in the construction of immovable property, other than plant and machinery except where it is an input service for supply of works contract service

๐Ÿ‘‰ Goods and services received by a taxable person for construction of an immovable property on his own account, other than plant and machinery, even when used in the furtherance of business

๐Ÿ‘‰ Goods and services on which tax has been paid under composition scheme

๐Ÿ‘‰ Goods and services used for personal consumption

๐Ÿ‘‰ Goods lost, stolen, written off or disposed by way of gift or free samples

๐Ÿ‘‰ Tax paid after detection of fraud, wilful misstatement or suppression

๐Ÿ‘‰ Tax paid for release of detained or seized goods

๐Ÿ‘‰ Tax paid for release of confiscated goods