Input Tax Credit (ITC) Claim Services
Claim eligible GST input credit correctly, reconcile it with GSTR-2B and avoid blocked or reversed credit.
Get Started Today
Input tax credit (ITC) claim is the process of setting off GST paid on business purchases against the GST you collect on sales, and it matters to every registered business that is not under the composition scheme. Credit is available only when the conditions of Section 16 of the CGST Act are met, and it is denied for items listed in Section 17(5). Our team reconciles purchase invoices with GSTR-2B, tests each claim against the conditions, identifies blocked and reversible credit, and prepares the credit section of GSTR-3B so you take what is lawful and no more.
Who provides this service: our team of Chartered Accountants.
Who Needs Input Tax Credit (ITC) Claim?
- Regular taxpayers with large purchase volumes who want lawful credit optimisation
- Manufacturers and traders reconciling many supplier invoices every month
- Businesses whose credit ledger balance looks unusually high or low
- Companies preparing for a GST audit or responding to a credit-related notice
- Service providers who buy mixed taxable and exempt inputs
Key Benefits
- Every purchase invoice tested against the conditions for taking credit, not just matched by value
- Regular reconciliation of your books with the auto-drafted GSTR-2B statement
- Blocked credits under Section 17(5) separated before they reach the return
- Reversal triggers such as unpaid supplier invoices and personal use identified in time
- Supplier follow-up lists prepared so missing invoices are chased with the right details
- A documented credit file that helps if the department later questions a claim
How It Works
Import purchase register
We take your purchase and expense records for the period, including goods, services and capital items, and organise them by supplier GSTIN, invoice number, date and tax charged.
Match with GSTR-2B
The register is compared with the statement generated on the portal. Invoices are grouped as matched, missing in the statement, or showing different values, so each gap has a clear cause.
Test each eligibility condition
For matched invoices we confirm a valid tax invoice, receipt of goods or services, that the supplier has filed, and that the credit is within the statutory time limit for claiming.
Separate blocked and reversible credit
Items falling under Section 17(5), inputs used for exempt or non-business supplies, and invoices unpaid beyond the permitted period are carved out and recorded for ineligible or reversed credit.
Prepare the credit section of GSTR-3B
Eligible credit, ineligible credit and reversals are entered in the proper tables of GSTR-3B. We share a working note so you understand how each figure was reached.
Follow up on missing invoices
Where supplier invoices have not appeared, we prepare a follow-up list so credit can be claimed in a later period, still within the time allowed by the GST law.
Documents Required
- GST registration certificate and portal access
- Purchase register or accounting data for the period
- Supplier tax invoices, debit notes and credit notes
- GSTR-2B statements for the relevant months
- Bills of entry for imported goods
- Proof of receipt of goods such as lorry receipts or delivery challans
- Payment records for supplier invoices
- Details of exempt, non-business or personal-use purchases
- Previously filed GSTR-3B returns
Timeline and Fees
Indicative timeline: A monthly reconciliation is typically completed within a few working days of receiving the purchase data. Clearing a backlog of several periods takes longer and depends on how many supplier mismatches have to be resolved.
Professional fee: The fee depends on how many purchase invoices and suppliers you have, how many periods need review, and whether a backlog or a department query is involved. We quote after a short look at your purchase data.
What Can Go Wrong if This Is Missed or Done Incorrectly
- Credit taken without meeting the conditions must be reversed and can attract interest
- Claiming blocked credit under Section 17(5) can result in a demand along with interest and, in some cases, penalty
- Credit not claimed within the statutory time limit is lost for good
- Heavy dependence on suppliers who do not file returns can lock up working capital
- Mismatch between returns and the purchase register can lead to scrutiny of your returns
Frequently Asked Questions
What are the conditions to claim input tax credit under GST?
Broadly, you must hold a valid tax invoice or other prescribed document, have received the goods or services, the supplier must have actually paid the tax to the government, and you must have filed your return. Credit must also be claimed within the statutory time limit. All conditions together matter, not just the invoice.
Why is my ITC not matching with GSTR-2B?
Common reasons include the supplier filing late or not at all, a wrong GSTIN or invoice number quoted by the supplier, invoices reported in a different month, and credit notes reducing earlier credit. A line-by-line comparison against your purchase register usually pinpoints the cause quickly.
Which purchases are blocked from ITC under Section 17(5)?
The law blocks credit on certain items, such as some motor vehicles, food and beverages, club memberships and goods or services used for personal consumption, subject to stated exceptions. The list and exceptions can change through amendments, so each purchase should be checked against the current provision.
Is there a time limit for claiming input tax credit?
Yes. The CGST Act sets a deadline linked to the financial year of the invoice, and credit not claimed by then is lost. The exact date has been amended in the past, so check the current wording of the law or ask our team to confirm it for the period you are working on.
When do I have to reverse input tax credit?
Reversal is required in situations such as the supplier remaining unpaid beyond the period set in the rules, inputs being used for exempt or non-business supplies, goods lost or written off, or credit that was wrongly taken. Reversals are reported in GSTR-3B and may carry interest if made late.
Can I claim credit if the supplier has not filed their return?
Generally not, because the credit depends on the tax being actually paid by the supplier and on the invoice appearing in your auto-drafted statement. Keep records of your follow-up with the supplier, and claim the credit in the period when it becomes available if it is still within the time limit.
Official Sources
Rules, forms and fees change. Check the current position on the official portal:
Related Services
Related Guides and Articles
Ready to Get Started?
Speak with a qualified professional about your input tax credit (itc) claim services requirements.
Last reviewed: . Laws, fees and procedures change; check the official portal before you act.
Disclaimer: The information on this page is for general informational purposes only and does not constitute professional legal, tax or compliance advice. Requirements vary by situation. Please consult a qualified CA or CS for advice specific to your needs. Government fees and timelines are subject to change; verify with the relevant authority before proceeding.