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Goods & Service Tax (GST)

GST Input Tax Credit

Input tax credit claims, GSTR-2B reconciliation, blocked-credit and reversal checks, and refunds of accumulated ITC under the CGST Act.

GST Input Tax Credit
Estimate Cost
₹5,000 – ₹50,000
Typical duration
7 days

Service overview

  • GST Input Tax Credit (ITC) management ensures businesses legally claim, reconcile, and defend tax credits paid on business purchases under Sections 16, 17, and 18 of the CGST Act
  • This service covers GSTR-2B matching, handling blocked credits under Section 17(5), calculating Rule 42/43 reversals for exempt supplies, managing 180-day vendor payment rules, and claiming unutilized ITC refunds for exports or inverted duty structures

Who needs it? / When is it needed?

  • Businesses with high input tax expenses seeking to optimize tax liability
  • Taxpayers receiving red-flag notices for ITC mismatches between GSTR-3B and GSTR-2B
  • Exporters or manufacturers under inverted duty structures claiming cash ITC refunds

What to expect from the WCP Professionals

  • Audit Purchase Eligibility: WCP professionals review your purchase ledgers against Section 16 rules to verify that items meet business test criteria.
  • Isolate Blocked Credits: WCP professionals flag blocked items under Section 17(5)—such as motor vehicles, personal consumption, and club memberships—to prevent wrongful claims.
  • Enforce the 180-Day Rule: WCP professionals audit supplier payment dates to flag invoices unpaid past 180 days, guiding required ITC reversals with interest.
  • Calculate Common Credit Reversals: For businesses with both taxable and exempt supplies, WCP professionals apply Rule 42 and 43 formulas to reverse proportional common credits accurately.
  • Track Vendor Compliance: WCP professionals generate vendor discrepancy reports so your procurement team can chase non-filing suppliers.
  • File Cash Refund Applications: WCP professionals prepare Form GST RFD-01 applications to recover unutilized accumulated ITC for zero-rated exports or inverted duty operations.

Key deliverables

  • Comprehensive Monthly ITC Eligibility Audit Report. GSTR-2B vs. Purchase Register Matching Summaries. Rule 42
  • Rule 43 Proportionate Reversal Workings. Non-Compliant Supplier Default List for payment holds. GST RFD-01 Refund Application Filing and Sanction Order tracking.

Standard turnaround time

  • Monthly ITC Audit & Reconciliation: 3 to 5 business days.
  • Refund Application Filing: 5 to 7 business days.
  • Statutory Cut-off: Annual ITC for a financial year must be claimed by November 30 following the year-end.

Government fees, timelines & key outcomes

  • Government Fees: No fee to claim ITC; claiming ineligible ITC attracts an 18% interest penalty under Section 50.
  • Timelines: Tax officers must process ITC refund claims within 60 days of acknowledgment.
  • Key Outcome: Fully maximized, audit-proof Input Tax Credit with zero penalty exposure.

Forms & filings involved

  • GSTR-2B & GSTR-3B Table 4: ITC Reconciliation and Claim Filing. Form GST ITC-01
  • ITC-02
  • ITC-04: Special Credit Claims & Job Work Filings. Form GST RFD-01: Application for Refund of Unutilized Accumulated ITC.

Documents required

  • Purchase Invoices, Debit/Credit Notes, and Import Bills of Entry
  • Proof of payment to vendors showing payment within 180 days
  • Export Shipping Bills, Invoices, and FIRC/BRC certificates
  • Monthly GSTR-2B portal summary downloads

What we need from you

  • Complete, unaltered purchase ledgers and expense files
  • Vendor payment dates and bank payment entries
  • Agreement to drop risky or indefensible credit claims

Important conditions

  • ITC is a conditional statutory benefit; invoice possession, receipt of goods, supplier tax payment, and GSTR-2B reflection are all legally required
  • Reversals for invoices unpaid within 180 days must include 18% interest
  • Professional fees cover legal review; taxes and penalties remain your responsibility

Additional information

Pay suppliers within 180 days of invoice date; if unpaid, you must reverse claimed ITC with interest until payment is completed.

The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.

How it works

  1. 1. Raise a service enquiry describing your requirement.
  2. 2. A Relationship Manager reviews it and opens it for bidding.
  3. 3. Pay into escrow and assign the professional you select.
  4. 4. Track progress to completion, then accept and release payment.
Raise an enquiry for GST Input Tax Credit   →

Frequently asked questions

What is the deadline to claim ITC for a year?

ITC for a financial year must be claimed by 30 November following the end of that year, or the date of filing the annual return, whichever is earlier.

What is GSTR-2B?

An auto-generated monthly statement of the credit available from your suppliers' filed returns; ITC claimed in GSTR-3B should be supported by it.

What if I don't pay my supplier within 180 days?

The ITC claimed on that invoice must be reversed with interest; it can be reclaimed once the payment is made.

Which credits are blocked?

Items listed in Section 17(5) — such as most motor vehicles, food and beverages, club memberships and goods for personal use — cannot be claimed as ITC.

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GST Input Tax Credit — Goods & Service Tax (GST) | White Collar Professional