Business Startup

GST Input Tax Credit Reconciliation

Rs.4899

All inclusive price

Select Package

GST input tax credit reconciliation and sending of SMS/email reminders to vendors.

CONTACT US

GST Input Tax Credit In Chennai

The input tax credit is the tax paid by the person on the purchase and it is used to reduce the tax liability when the sales are made. The input tax credit in Chennai is levied based on the value-added at each stage of the supply chain until it is reaching the consumer. Input tax credit in Chennai includes the central tax, state tax, integrated or the cess paid by the person who has a valid registration.

Tax paid on the reverse charge basis and the IGST charged on the import of goods is also included in the Input tax credit. Only the tax paid under the composition scheme is not included in the input tax credit.

Using the Input tax credit mechanism in Chennai can help the business achieve neutrality in the incidence of tax. By ensuring that the input tax element is not entering the production cost or the cost of supply of Goods and services.

Who can claim an input tax credit in Chennai

Input Tax Credit in Chennai is claimed only by people having GST Registration and proper
documentation and individuals filing of GSTR 2 returns.

  1. The individual must have a tax invoice or the debit note that is issued by the supplier of the input or the input services.
  2. The individual has to receive goods, services, or both.
  3. The input supplier has to pay the government the GST that is charged concerning supply.
  4. The returns should be filed as per Section 39.
  5. If the goods are received in lots or installments the Input Tax Credit can be claimed when the last lot is received.

Input tax credit refund

The taxpayers can claim the GST refund for an Input tax credit in Chennai. To claim the Input tax credit refund GST RFD-01 a Form is to be filed by the taxpayer at the GST portal to claim the refunds for the accumulated input tax credit due to the inverted tax structure. This is done when the tax that is levied on the inputs is higher than the tax that is levied on the output supplies.

Eligibility for the input tax credit refund in Chennai

A person with an aggregate turnover of up to Rs.5 crore in the previous financial year or the current financial year and has opted to file Form GSTR 1 quarterly can apply for an Input tax credit in Chennai

Related Guides

Other Services on IndiaFilings in Chennai

FAQ's

The following four people who are registered as the taxable person can obtain ITC:
  1. He has a tax invoice or a debit note or any other tax paying documents as prescribed.
  2. He has received the goods and services or both
  3. The supplier is done paying the charge with respect to supply to the government and
  4. He has furnished the returns under section 39.
The taxpayers must file form GST RFD-01 A form on the GST portal claim input tax credit refund in Chennai.
An individual with an aggregate turnover of up to Rs.1.5 crore in the previous financial year or the current financial can opt to file Form GSTR-1 quarterly and also apply for a refund every quarter.
The definition of input tax credit includes the tax that is payable under the reverse charge. Hence, the GST paid on reverse charge is considered to be an input tax credit.