Input Tax Credit (ITC) Services

Input Tax Credit (ITC) is one of the most crucial features of the GST framework. At RV Shekhawat & Co. LLP, we help businesses maximize their ITC benefits by ensuring accurate claims, compliance with GST laws, and seamless integration into financial records for better tax management.

What is Input Tax Credit?

Input Tax Credit allows businesses to reduce the tax they have paid on inputs (purchases of goods and services) from the tax they are required to pay on their outward supplies. In simple words, ITC prevents double taxation and reduces the overall tax burden on businesses.

Only GST-registered businesses can claim ITC, subject to specific conditions such as possession of a valid tax invoice, actual receipt of goods/services, and payment of tax to the government by the supplier.

Eligibility Conditions for ITC

Registered Business

Only GST-registered entities can claim Input Tax Credit.

Valid Tax Invoice

Possession of a proper GST invoice issued by a registered supplier.

Actual Receipt

Goods or services must be actually received by the claimant.

Why Input Tax Credit Matters?

  • Reduces Tax Liability: Lowers the overall tax payable to the government.

  • Prevents Double Taxation: Eliminates cascading of taxes at multiple stages.

  • Improves Cash Flow: Ensures efficient use of working capital.

  • Encourages Transparency: Builds trust through proper compliance.

  • Supports Business Growth: Reduces unnecessary tax costs and increases profitability.

Our Process

1
ITC Eligibility Check

We analyze your transactions to identify eligible and ineligible ITC claims.

2
Invoice Verification

We verify supplier invoices, GSTIN, and GSTR filings to validate claims.

3
Reconciliation

We match your purchase register with GSTR-2B/2A to ensure compliance.

4
Filing Assistance

We assist in accurate ITC reporting in monthly/annual GST returns.

5
Advisory & Support

We provide guidance on ITC disputes, blocked credits, and legal compliances.

Documents Required for ITC Claim

To claim Input Tax Credit, businesses must maintain the following documents:

Tax Invoice / Debit Note

Issued by a registered supplier under GST.

Goods/Services Receipt

Proof of actual receipt of supply.

Supplier GST Payment

Evidence that supplier has paid GST to the government.

Return Filing Records

GSTR-3B and GSTR-2B/2A reconciliation data.

FAQs on Input Tax Credit

Who can claim ITC?
Can ITC be claimed on all expenses?
What if supplier doesn’t pay GST?
Is ITC available on advance payments?
Can ITC be reversed?

Yes, ITC must be reversed if payment to supplier is not made within 180 days or in case of ineligible claims.