LEDGERS Accounting Software

Select Package

LEDGERS accounting software with GST invoicing, GST return filing and GST eWay bill integration.

LEDGERS accounting software with integrated payment gateway or EQL business card, GST invoicing, GST return filing, GST eWay bill integration.

LEDGERS accounting software with 1 year accounting support from dedicated accountant, integrated payment gateway or EQL business card, GST invoicing, GST return filing, GST eWay bill integration.

All Inclusive Pricing - No Hidden Fee

Pay as you go grow pricing

Basic
Includes all features required to grow a micro business
  • Unlimited Users
  • Upto 500 Estimates
  • Upto 500 Invoices
  • Upto 500 Purchase Invoices
  • Upto 500 Purchase Orders
  • GSTR-3B Return Filing
  • GSTR-1 Return Filing
  • GSTR-4 Return Filing
  • GSTR-9 Return Filing
  • Import or Export to Excel
  • Phone, Chat & Email Support
Standard
Includes all features required to grow a small business
  • Unlimited Users
  • Upto 5000 Estimates
  • Upto 5000 Invoices
  • Upto 5000 Purchase Invoices
  • Upto 5000 Purchase Orders
  • GSTR-3B Return Filing
  • GSTR-1 Return Filing
  • GSTR-4 Return Filing
  • GSTR-9 Return Filing
  • Input Tax Credit Reconciliation
  • GST eWay Bill
  • GSTN API Connect to File Directly
  • Import or Export to Tally
  • Phone, Chat & Email Support
Premium
Includes all features required to grow a medium business
  • Unlimited Users
  • Unlimited Estimates
  • Unlimited Invoices
  • Unlimited Purchase Invoices
  • Unlimited Purchase Orders
  • GSTR-3B Return Filing
  • GSTR-1 Return Filing
  • GSTR-4 Return Filing
  • GSTR-9 Return Filing
  • Input Tax Credit Reconciliation
  • GST eWay Bill
  • GSTN API Connect to File Directly
  • Import or Export to Excel
  • Import or Export to Tally
  • Phone, Chat & Email Support

9 Important Articles on Input Tax Credit

List of goods and services not eligible for input tax credit under GST. Input tax credit is not available for conveyance, insurance and personal consumption.

The Central Goods and Service Tax (Amendment) Act, 2018 has been made effective from 1st February 2019 and has resulted in various changes in the utilization of input tax credit.

Procedure for claiming input tax credit refund due to inverted tax structure through the GST Portal. Inverted Tax Structure refers to a situation where the tax levied on inputs is higher than the tax levied on output supplies.

Procedure for transfer of input tax credit from one business to another through the GST Portal. GST input tax credit can be transferred by filing Form GST ITC-02.

List of documents required for company registration in India. Documents required for Indian or Foreign Director, registered office and shareholder in company.

Procedure for claiming input tax credit refund for Exports through the GST Portal. GST RFD-01A form has to be filled at GST portal by the taxpayer to claim the refund of input tax credit on exports.

Input tax credit for imports is provided for importers having GST registration. IGST and GST compensation cess is applicable on goods imported into India.

File your GST registration application online through Bizcruise. Get help with GST registration procedure, eligibility and documents required. Entities with an annual revenue of more than Rs.20 lakhs must obtain GST registration. Complete your GST registration online in less than 5 working days.

File GST return online through Bizcruise with GST Expert Support. You can prepare and file GSTR-1, GSTR-2, GSTR-3 and GSTR-4 return online through Bizcruise. In addition to filing GST returns, you can also issue GST invoices and record purchases on LEDGERS to automatically file GST returns.

Input Tax Credit FAQS

What is GST input tax?

Input tax is the central tax (CGST), state tax (SGST), integrated tax (IGST) or cess paid by a person having GST registration on supply of goods or services. GST input tax also includes tax paid on reverse charge basis and IGST charged on import of goods. However, input tax does not include tax paid under composition levy.

Can GST paid on reverse charge basis be considered as input tax?

Yes. The definition of input tax includes the tax payable under the reverse charge.

What are the conditions for availing input tax credit?

Following four conditions are to be satisfied by the registered taxable person for obtaining ITC: is in possession of tax invoice or debit note or such other tax paying documents as may be prescribed; he has received the goods or services or both; the supplier has actually paid the tax charged in respect of the supply to the

  • The taxpayer is in possession of tax invoice or debit note or such other tax paying documents as may be prescribed.
  • The taxpyaer has received the goods or services or both.
  • The supplier has actually paid the tax charged in respect of the supply to the government.
  • The taxpayer has filed the GST return

Can a person take input tax credit without payment of invoice?

Yes, the recipient can take input tax credit. However, the taxpayer would be required to pay the consideration along with tax within 180 days from the date of issue of invoice. This condition is not applicable where tax is payable on reverse charge basis.

What is the time limit for availing GST input tax credit?

A registered person cannot take input tax credit in respect of any invoice or debit note for supply of goods or services after the due date for furnishing the GST annual return. If annual return is filed before the due date, then no change can be made after filing of GST annual return.

Can input tax credit be claimed on lost or damaged goods?

No, a person cannot take input tax credit with respect to goods lost, stolen, destroyed or written off. In addition, input tax credit with respect to goods given as gifts or free samples are also not allowed.

How to avail ITC on goods or services used partly for business?

The input tax credit of goods or services attributable only to the purpose of business can be taken by registered person. The manner of calculation of eligible input tax credit is provided in GST rules.

What happens in case of invoice mismatch during reconciliation?

In case of mismatch, the supplier and recipient would be updated about the mismatch. If the mismatch is not rectified, then the amount will be added to the output liability of recipient in the return for the month succeeding the month in which discrepancy is communicated.

What is Director Identification Number (DIN)?

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

Is input tax credit allowed only after matching?

No, input tax credit is allowed provisionally for two months. The supply details are matched by the system and discrepancies are communicated to concerned supplier and recipient. In case mismatch continues, the ITC taken would be reversed automatically.

What are the requirements to be a Director or Nominee in a OPC?

No, provisionally allowed input tax credit can be used only for the payment of self-assessed output tax in the return.

GST Input Tax Credit Reconciliation

GST is an aberrant duty imposed on merchandise and enterprises dependent on the rule of significant worth expansion. Henceforth, the duty of expense depends on the worth added at each phase of the flexibly chain till the item or administration arrives at a definitive buyer. In such a duty framework, to invalidate the falling impact of the assessment, there exists a way to set of charges paid on obtainment of crude materials, consumables, plant and apparatus, gear, administrations, and so on, that are utilized for the assembling or flexibly of products and enterprises. This component used to balance the expense obligation is called input tax reduction.

LEDGERS - Input Tax Credit Reconciliation

LEDGERS GST Software supports seamless matching and reconciliation of input tax credit at scale. The LEDGERS input tax credit reconciliation tool can sync with GST Portal through API to fetch GSTR-2A data, prepare the data for matching and reconcile with purchases data.

Purchases that are not matched with GSTR-2A data for flagged for further action like sending reminders to the supplier or updating purchase data and more.

local-reach

With LEDGERS, you can be assured that your business has received all input tax credit due. A streamlined input tax credit reconciliation process will help you reduce your GST payable each month, streamline purchases and boost profitability.

local-reach

Input Tax Credit

Under GST, every individual having a GST enrollment in the flexibly chain partakes during the time spent controlling, gathering GST charge and dispatching the sum gathered. Notwithstanding, to maintain a strategic distance from twofold tax collection and falling impact of duty, input tax reduction is given as a way to set off expense paid on acquirement of crude materials, consumables, products or administrations that was utilized in the assembling and gracefully and offer of merchandise or administrations. By utilizing the information tax reduction instrument, organizations can accomplish lack of bias in the frequency of assessment and guarantee that such info charge component doesn’t go into the expense of creation or cost of gracefully of merchandise and enterprises.

Eligibility for Claiming Input Tax Credit

Input tax credit can be claimed only by a person having GST registration and based on proper documentation and filing of GSTR-2 returns. The following documentary requirements must be satisfied by a taxpayer for claiming input tax credit.

  1. An invoice issued by the Supplier as per the GST Rules for Invoice; or
  2. A debit note issued by a supplier; or
  3. A bill of entry or any similar document; or
  4. An ISD invoice or ISD credit note or any document issued by an Input Service Distributor.

In addition, the following conditions are also applicable for claiming input tax credit:

  1. The taxpayer is in possession of a tax invoice or debit note issued by a registered supplier or other tax paying documents.
  2. The taxpayer has received the goods and/or services.
  3. The tax charged in respect of the supply has been actually paid to the account of the appropriate Government, in cash or through utilisation of available input tax credit.
  4. The taxpayer has filed the the necessary GST filings.

Goods & Services Not Eligible for Input Tax Credit

Under GST, input tax credit is not available in respect of the following goods or services:

  1. Motor vehicles, except when they are supplied in the course of business or used for providing taxable services like:
    • Transportation of passengers
    • Transportation of goods
    • Providing training on driving, fling, navigating such vehicles
    • Further supply of such vehicles or conveyance
  2. Supply of goods and/or services in relation to food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where such inward supply of goods or services of a particular category is used by a registered taxable person for making an outward taxable supply of the same category of service
  3. Membership of a club, health and fitness centre
  4. Rent a cab, life insurance, health insurance, except where it is statutorily obligatory for an employer to provide such services
  5. Travel benefits extended to employees on vacation such as leave or home travel concession
  6. Goods and/or services received by the principal in the construction of immovable property, other than plant and machinery except where it is an input service for supply of works contract service
  7. Goods and services received by a taxable person for construction of an immovable property on his own account, other than plant and machinery, even when used in the furtherance of business
  8. Goods and services on which tax has been paid under composition scheme
  9. Goods and services used for personal consumption
  10. Goods lost, stolen, written off or disposed by way of gift or free samples
  11. Tax paid after detection of fraud, wilful misstatement or suppression
  12. Tax paid for release of detained or seized goods
  13. Tax paid for release of confiscated goods

  • Only a natural person who is Indian Citizen and resident in India can incorporate OPC.
  • Resident in India means a person who had resided in India for a period not lesser than 182 days in the prior calendar year.
  • Legal entities like Company or LLP cannot incorporate a OPC.
  • The minimum authorised capital is Rs 1,00,000.
  • A nominee must be appointed by the promoter during incorporation.
  • Businesses involved in financial activities cannot be incorporated as a OPC.
  • OPC must be converted to a private limited company when paid-up share capital exceeds Rs.50 lakhs or turnover crosses Rs.2 crores.

Thus, a one-person company can be formed by an Indian citizen who has his/her presence in India for at least 182 days during the immediately preceding calendar year. A person can incorporate not more than one OPC. Finally, an OPC is prohibited from having a minor as its member.