Maximize
Input Tax Credit (ITC through GSTR3B
For both small and large enterprises in India, one of the most critical tax
documents is
the GSTR3B return as based on this ITC gets determined. Companies should file this
return monthly, including all the sales and purchases made by your business during
the
month. For GSTR3B filing should be audit proof and reconciled with GSTR1, GSTR2B and
Purchase Register (PR) data. In addition, if you have a large amount of input tax
credit
(ITC), it is vital maximizing your ITC return to reduce your overall tax liability.
Managing unclaimed ITC with collabaritive update to track unclaimed invoices by
Supplier, Department in Purchase Register, 2B ledger with visibility via dashboard
are
keys for ITC management.
Here are
some
tips on how to maximize ITC:
1) Invoice Validity:
Make sure that all of your invoices are accurate and up to date. It means that
all
of the information on the invoice, such as the date, GSTIN number, product
description, etc., should be correct. If there are any discrepancies between the
invoice and the actual purchase or sale, then it could impact your ITC claim.
2) Track your ITC
balances:
Track your ITC balances carefully. It is essential to know how much ITC you have
available to make informed decisions about when to claim it. You can use
software or
an Excel spreadsheet to help with this tracking.
3) Take advantage
of
government schemes:
Take advantage of government schemes. There are several schemes available that
can
help businesses increase their ITC refund amount. For example, the Input Tax
Credit
Utilization Scheme allows companies to carry forward excess ITC from one month
to
another. The Export Promotion Capital Goods Scheme provides a 20% refund on
certain
imported capital goods used for manufacturing or exports.
4) Claim your ITC
asap:
Claim your ITC as soon as possible. Don't wait until the end of the year - if
you do
this, then you could end up forfeiting some of it. Instead, claim it as soon as
you
become eligible for it (usually within 2-3 months after making a purchase). It
will
help ensure that you receive the full benefit of your credit.
5) Keep Records:
Keep good records! It sounds like an obvious tip, but it's essential,
nonetheless.
Ensure that you keep all relevant documentation relating to your purchases and
sales, such as invoices, bills of lading, customs declarations forms, etc. You
can
do a few key things to make sure you're getting the most out of your input tax
return (GSTR3B). First and foremost, be sure to keep good records. Having
detailed
invoices for all your purchases and any other documentation that may be relevant
makes the reconciliation simple. Secondly, don't wait until the last minute to
file
your return - give yourself plenty of time to double-check everything and avoid
any
mistakes. Finally, if you have any questions or concerns, don't hesitate to
reach
out to a professional for help.
Conclusion:
By
following
these simple tips, you can ensure that you're taking full advantage of your
GSTR3B
input tax return and getting the most money back from the government. Maximizing
your input tax return (GSTR3B) ensures that all your eligible purchases are
appropriately invoiced. It means that the supplier has included the correct GST
amount on the invoice and that you have kept accurate records of the purchase.
Another way to maximize your GSTR3B is to take advantage of any eligible
deductions,
such as those for business expenses. Finally, be sure to file your GSTR3B on
time to
avoid any penalties or interest charges
All of the above will help you
manage
the process better and ensure that you take advantage of all credits available
at
your disposal and avoid delays in your payment cycle.
Why Choose
Taxilla to Maximize your GSTR3B Return?
Taxilla's SaaS
application Audit Proof 3B offers validations, reconciliations, and preparation of
GSTR3B with automation and compliance features. Taxilla aslo offers the most
advanced
features rich GSTR3B solutions with below unique features.
.
- Automatically Fetch data from GSTR1, GSTR 2B.
- Generate and post GSTR-3B return automatically with click of the button.
- Increased ROI as there is no penalty, notice and audit costs for ever
- Reconcile 2B data with PR data with segregation of matched, partial matched,
unmatched data as per supplier, department, branch or location with dispute
management.
- Automated ITC setoff calculation with tax payable as per ITC rules before
posting to
GSTN for better credit utilization.
- Calculations of ITC reversal U/s,42,43
- Calculations of inelible ITC section 17(5)
- Options to claim ITC from partial and unmatched records as per tolerance limit.
- PAN level GST return processing with special status widgets.
- Various Dashboards for, Org, GSTN, Department, Supplier for better ITC
visibility.
- Carry forward ITC
- ITC from GSTR 6
- Automatically Revised ITC calculation based on invoice amendments of suppliers
with
alerts for excess ITC available for claim for already claimed invoices.
- Year wise MIS reports with Graphs at location level and organization level
Please reach out to our experts to understand how we can help you.