Input Tax Credit (ITC) Review Services – Maximize ITC Benefits & Ensure Compliance
Input Tax Credit (ITC) is a vital mechanism under GST that allows businesses to offset the tax paid on purchases against their output tax liability. However, claiming ITC comes with stringent compliance requirements including invoice matching, vendor compliance, and adherence to eligibility criteria defined under GST laws.
We offer specialized Input Tax Credit (ITC) Review Services aimed at ensuring that your business claims every eligible credit while staying fully compliant with GST provisions. Our comprehensive ITC review process includes examining purchase invoices, matching with GSTR-2A/2B data, and ensuring compliance with Rule 36(4) and Section 16 conditions.
We perform detailed checks on ITC eligibility including verification of tax payment by vendors, timely receipt of goods/services, invoice validity, and restriction checks on blocked credits (as per Section 17(5)). We also identify any ineligible or excess credit availed, helping businesses to rectify before departmental audits or assessments.
Beyond transactional review, we provide strategic advisory on optimizing ITC claim processes, vendor compliance management, and implementing internal controls to minimize credit reversals, safeguard working capital, and avoid interest or penalties arising from improper ITC claims.
Frequently Asked Questions (FAQs)
An ITC review ensures that only eligible credits are claimed, avoiding reversals, penalties, and ensuring maximum cash flow efficiency through correct credit utilization.
Ineligible ITC can arise due to blocked credits (Section 17(5)), vendor non-compliance (non-filing of GSTR-1), missing invoice details, or procedural lapses like delayed payments to vendors.
GSTR-2A and 2B provide data of invoices uploaded by suppliers. Only matched invoices are eligible for ITC claims. Discrepancies lead to denial or deferment of credits.
Yes, we guide clients in voluntarily reversing ineligible credits, filing rectification returns, and ensuring compliance to minimize penalties and interest charges.
GST
CA. Dhiraj Jain
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