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Recover the GST you pay on business purchases

Learn who can claim input credit, what is blocked, and how our team reconciles and optimises it every month.

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How input tax credit works Conditions to claim credit Credits that are blocked Order of using your credit When you must reverse credit How we help Common questions

How input tax credit works

When you buy goods or services for your business, the GST you pay on them can be set off against the GST you collect from customers. Only the difference goes to the government. This prevents tax from stacking up at every link of the chain and protects your cash flow.

Simple example: you charge ₹18,000 GST on sales and paid ₹11,000 GST on eligible purchases. You deposit only ₹7,000.

Conditions to claim credit

You hold a valid tax invoice or similar document
You have received the goods or services
The supplier has actually paid the tax to the government
You have filed your own summary return
The credit appears in your auto-drafted statement GSTR-2B
You claim within the statutory time limit, generally the earlier of 30 November after the financial year or the annual return date

Who cannot claim

Composition scheme taxpayers
Persons making only exempt supplies
Anyone without registration

Credits that are blocked

Some purchases do not qualify even when you hold an invoice.

Personal use

Goods or services consumed for non-business purposes.

Motor vehicles

Generally blocked, with exceptions such as vehicle dealers and transport businesses.

Food and beverages

Outdoor catering, club memberships and similar benefits, unless otherwise allowed by law.

Construction

Works on immovable property, with specific carve-outs.

Gifts and free samples

Goods given away without consideration.

Lost or stolen goods

Items destroyed, stolen or written off.

Order of using your credit

Credit type	Can pay first	Then
IGST	IGST	CGST, then SGST
CGST	CGST	IGST
SGST	SGST	IGST

CGST credit cannot pay SGST liability and the reverse. Balance credit carries forward to later months.

When you must reverse credit

Supplier is not paid within 180 days of the invoice date, with interest if credit is later re-claimed
Goods or services are used partly for exempt or non-business purposes
Credit was claimed wrongly and found by an officer
Credit-note adjustments change the original value
Registration is cancelled while stock is held

How we help

Match purchasesWe compare your books to GSTR-2B every month.
Chase suppliersWe flag invoices missing from your statement and prompt suppliers.
Claim eligible credit onlyBlocked and ineligible items are separated before filing.
Track reversalsReversal and re-claim entries are logged for audit.

Common questions

Is the credit lost if I miss the deadline?

Generally yes. Claim eligible credit within the permitted window.

Can I claim on a vendor bill with no GSTIN?

No. A valid GST invoice from a registered supplier is needed.

Does unused credit expire?

No, it carries forward unless the registration is cancelled.

Can I get a refund of unused credit?

In specific cases such as exports and inverted duty structures, subject to conditions.