All Things put Together in Contributing in Matters of Input Tax Credit
The input tax credit will refer to the already paid tax by the individual in the purchasing of the goods and services and the same is available in the form of a deduction from the point of the tax payable. The amount of the input tax credit is based on account of the IGST. Here you have the payment options of SGST or UTGST. We at Accounting4you will explain to you all things in detail and the account of the CGST shall be utilized for the legitimate taxation payment. The portion of the input tax credit should be first used for the payment of the SGST or UTGST and then it is used for the payment of IGST. However, the same cannot be used for the payment of CGST.
The kind of tax credit should be calculated based on state. This implies that the ITC of SGST in one specific state cannot be used for making the payment of SGST in any other state. However, the kind of input tax credit cannot be used for the payment of the interest penalty or the kind of fees that is payable under the particular act in place of the GST in the way that is being mentioned above.
It is essential knowing how to claim input tax credit and in the process, you can refer online. For the reason of claiming ITC, the buyer should be making a payment to the supplier for the reason of supplying the received within the tenure of 180 days from the date when the invoice has been issued. In case the buyer is not able to do so the credit amount that is availed shall be added to the output taxation liability. It is time that you take account of the GST input tax credit and to know more you can refer us at Accounting4you.
There is a procedure for input tax credit reconciliation. In this context, the taxpayer can claim the ITC in the case the invoice is presented as part of the GSTR-2B. At this point, the taxpayer needs to do the sort of reconciliation in place of the ITC as according to the purchase register and the notion of the GSTR-2B data is in no way matching with each other. For this reason, you have to download the supplier invoice of GSTR 2A straight from the governmental portal. You can even upload the purchasing invoice using excel or tally.
The process of ITC Reconciliation is quite obvious. You can even make run the GSTZen and it is also important to download the report and review it completely. The importance of the GST reconciliation is for the claiming of the 100% accurate and correct ITC. You can claim the same by sorting out all the differences at Accountig4you and this happens in-between the purchasing register and the GSTR 2A. The kind of GST reconciliation will also help in avoiding the level of duplicity at the time and point of filing the Annual GST Return.