95% of Indian businesses claim less ITC We help enterprises unblock working capital through 100% ITC claims, which most tax teams face a challenge with. We work with your team to make sure no money is left on the table. We've got you covered Our cloud-based GST software tackles the ever-evolving GST system updates without any IT/SOP changes Hard-locking in GSTR-3B GSTN made Table 3.2 inter-state data, non-editable, starting July 2025 in GSTR-3B Invoice Management System Preparations & IMS reconciliations Headline to be only Invoice Management System Input Service Distributor Achieve accurate ITC distribution through automation and intelligent workflows India's first end-to-end solution to maximize ITC for businesses We've unblocked over ₹ 9000 crores for 3000+ businesses Healthcare & pharmaceuticals Hospitality & real estate Financial services Maximize your ITC claim by putting your ITC on autopilot with us Maximize your ITC claim by putting your ITC on autopilot with us Compliant ITC claim Why should your business suffer when your vendors do not comply? Sub-optimal input tax credit management can impact profitability by up to 8%. We think that is a lot . How do we make it happen? A two-way connect with your accounting system to schedule auto-recons of your GST data, and sync vendor payment decisions. Auto-reconciliations run in the background, if there is any missing data/invoices found, an automated communication is sent to your vendor. With advanced data matching, vendor communication and intelligent reports, we help you save on taxes. Check how much you can save See what you can save The all-in-one Solution Try the one and only comprehensive solution to claim maximum ITC automatically, powered by Artificial Intelligence! Auto-manage vendor payments Zero impact from non-compliant vendors using smart vendor risk sort & auto payment → Instant updates with 2-way ERP flow Schedule Auto-Recon on Sundays, see the results in your mailbox on Monday morning! → Automate vendor communication Multi-channel vendor communication to simplify vendor interactions → Define or modify user actions Allow teams to smoothly interact, without accessing confidential data with advanced UAM → Configurable PAN-level Matching Avoid manual matching through highly configurable AI powered PAN level matching → Auto-manage vendor payments Zero impact from non-compliant vendors using smart vendor risk sort & auto payment Instant updates with 2-way ERP flow Schedule Auto-Recon on Sundays, see the results in your mailbox on Monday morning! Automate vendor communication Multi-channel vendor communication to simplify vendor interactions Define or modify user actions Allow teams to smoothly interact, without accessing confidential data with advanced UAM Configurable PAN-level Matching Avoid manual matching through highly configurable AI powered PAN level matching Put your ITC journey on auto pilot Exclusive features that completely automate the ITC claim process. Manage Vendor Payments Auto-manage payments using smart vendor risk categorisation Vendor communication One-click communication with vendors across email, WhatsApp Real Time ERP sync 2-way flow with ERP to schedule auto-recon in the background Cross-team collaboration Seamless collaboration across IDT, Procurement and AP teams AI-based matching Minimise manual reconciliation with industry-leading engine Intelligent reports Smart suggestions to help you make decisions & avoid notices 100% peace of mind We were awarded a GSP license after rigorous scrunity of our technological and financial capabilities to serve our clients. Your data is transmitted across SSL certified pathways. We are SOC 2 compliant. We do not share your or your clients’ data with unaffiliated third parties for their ownpurposes. We use ISO 27001 certified data centres, which are quarterly VAPT tested and externally audited. Hear it from our clients Rajesh Kumar Pandey Manjunath Shriram Please fill in your details and our representative will get in touch with you shortly Thank you for your response Our representative will get in touch with you shortly. Frequently Asked Questions As per the CGST Act, the input tax in relation to a registered person is central tax, state tax, integrated tax or Union Territory tax charged on purchasing goods or services or both. The ITC also covers integrated tax charged on import of goods and GST paid on a reverse charge basis. In simple terms, when paying GST on sales, you can reduce the tax that you have already paid on purchases and pay the balance amount. ITC can be claimed by a person registered under GST only if he fulfils ALL the conditions as prescribed: The dealer should have a tax invoice The said goods/services have been received. The recipient has filed the GSTR-3B. The tax charged in the invoice has been paid to the government. The dealer should have a tax invoice The said goods/services have been received. The recipient has filed the GSTR-3B. The tax charged in the invoice has been paid to the government. Also, when goods are received in instalments, ITC can be claimed only when the last lot is received. No ITC will be allowed if depreciation has been claimed on the tax component of a capital good. The recipient must pay the invoice amount within 180 days from the date of invoice. If the recipient fails to pay so, the amount taken as ITC should be reversed. The time limit to claim ITC against an invoice or debit note raised in a particular financial year is earlier than the below: Due date of filing GST returns for September of next financial year OR Date of filing the annual returns relevant for that financial year Due date of filing GST returns for September of next financial year OR Date of filing the annual returns relevant for that financial year The following are the various sections and rules governing the ITC: Section 16 of CGST Act: Explains eligibility and conditions for claiming Input Tax Credit (ITC). Section 17 of CGST Act: Elaborates about Apportionment of credit and blocked credits. CGST Rule 36(4): Explain provisional ITC and calculation of the same. CGST Rule 42: Reversal of ITC on inputs or input services. CGST Rule 43: Reversal of ITC on capital goods. CGST Rule 86A: Conditions for utilising ITC. CGST Rule 86B: Explain the restriction of usage of ITC. CGST Rule 88A: Contains order of utilisation of ITC. Section 16 of CGST Act: Explains eligibility and conditions for claiming Input Tax Credit (ITC). Section 17 of CGST Act: Elaborates about Apportionment of credit and blocked credits. CGST Rule 36(4): Explain provisional ITC and calculation of the same. CGST Rule 42: Reversal of ITC on inputs or input services. CGST Rule 43: Reversal of ITC on capital goods. CGST Rule 86A: Conditions for utilising ITC. CGST Rule 86B: Explain the restriction of usage of ITC. CGST Rule 88A: Contains order of utilisation of ITC. Taxpayers will be able to claim ITC only if the invoice is present as a part of their GSTR-2B. Hence, taxpayers need to do a reconciliation to identify if ITC as per their purchase register and GSTR-2B data is matching. Up to July 2020, taxpayers were comparing the GSTR-2A with the purchase register. Due to the introduction of static return in GSTR-2B, the monthly reconciliation has moved from GSTR-2A to GSTR-2B. However, for the yearly reconciliation, GSTR-2A, which is a dynamic return, is preferred. But as an exception, one must still refer to GSTR-2A for TDS and TCS credits. The GST returns are filed either on a monthly or quarterly basis. Finally, annual returns must be filed after the financial year gets over, but before the 31st December of subsequent FY. This filing would need consolidation of the data reported over the FY. To ensure the correctness of the declaration made and to avoid duplications, taxpayers must reconcile the data, then consolidate the values and make the declaration. The following are the few advantages of using AI-based tools for automated ITC reconciliation: Import of data can be given from any source such as ERP, Excel, bill books, etc. Minimises the manual efforts and time Avoids data transcription errors Ability to handle a massive amount of data Allows deep reporting and provides valuable insights It helps in claiming only eligible ITC as the tool is updated whenever there is a change in law Import of data can be given from any source such as ERP, Excel, bill books, etc. Minimises the manual efforts and time Avoids data transcription errors Ability to handle a massive amount of data Allows deep reporting and provides valuable insights It helps in claiming only eligible ITC as the tool is updated whenever there is a change in law GSTR-3B vs GSTR-1 tax comparison report: Enables clients to understand the difference in the tax liability, which helps clients avoid inconsistencies between these two returns and avoid penalty/notice from GSTN. GSTR-3B vs GSTR-2A and GSTR-2B ITC comparison report: Identifies excess ITC claims for each month and ensures that the taxpayers are prepared for any notice that comes their way. Monthly Tax and ITC summary report: Gives month-on-month view for the top management on the tax paid, and ITC was taken by each of the GSTINs. GSTR-3B vs GSTR-1 tax comparison report: Enables clients to understand the difference in the tax liability, which helps clients avoid inconsistencies between these two returns and avoid penalty/notice from GSTN. GSTR-3B vs GSTR-2A and GSTR-2B ITC comparison report: Identifies excess ITC claims for each month and ensures that the taxpayers are prepared for any notice that comes their way. Monthly Tax and ITC summary report: Gives month-on-month view for the top management on the tax paid, and ITC was taken by each of the GSTINs. The automatic vendor communication tool allows vendor communications and seamlessly tracks vendor communication by having all communication channels packed into one. It sends automated communication to vendors and reduces follow-up efforts to the least. It helps in identifying non-compliant vendors and empower them to comply. Also, it nudges quarterly vendors to use the IFF. The two-way integration tool pulls the purchase register from the ERP, GSTR-2A and GSTR-2B. One can schedule the auto-reconciliations and sync payment decisions for each invoice back into the ERP automatically. Also, these features can be used for taking actions in bulk. Creating an indemnification clause: Before making a supply, as part of the supply agreement, a clause can be inserted where the supplier will be required to indemnify the recipient in the event the supplier fails to carry out the necessary compliance requirements, resulting in a loss of credit to the recipient. Compliance software: A software or application can be put in place, containing relevant details for every vendor, which helps with compliance by keeping track of the invoices, showing return-filing status, sending out due-date reminders, etc. Incentive system: An incentive system for the vendor could be developed where he is encouraged to file his returns on time and pass on the necessary credit. However, this could result in an increased cost to the recipient. Boycotting defaulting suppliers: The suppliers who commit such compliance defaults repeatedly could be boycotted either by reducing orders placed with them or refusing to deal with them altogether. However, this option could hamper business relationships. Creating an indemnification clause: Before making a supply, as part of the supply agreement, a clause can be inserted where the supplier will be required to indemnify the recipient in the event the supplier fails to carry out the necessary compliance requirements, resulting in a loss of credit to the recipient. Compliance software: A software or application can be put in place, containing relevant details for every vendor, which helps with compliance by keeping track of the invoices, showing return-filing status, sending out due-date reminders, etc. Incentive system: An incentive system for the vendor could be developed where he is encouraged to file his returns on time and pass on the necessary credit. However, this could result in an increased cost to the recipient.

Boycotting defaulting suppliers: The suppliers who commit such compliance defaults repeatedly could be boycotted either by reducing orders placed with them or refusing to deal with them altogether. However, this option could hamper business relationships. Have queries? Visit our support center Engineering blog FinTech glossary ClearTax Chronicles GST Product Guides Cleartax(Saudi Arabia) Income Tax e Filing ClearInvestment Mutual Funds & ITR e-filing App Income Tax App android Secion 80 Deductions Income tax for NRI New GST returns Input tax credit e-Invoicing Software eWay Bill Registration CA partner program Billing Software Invoicing Software Services for Businesses Tax filing for professionals Tax filing for traders Clear Launchpad Trademark Registration Company Registration MSME Registration HSN Code Finder Cement HSN Code Transport HSN Code Plastic HSN Code RESOURCES & GUIDES GST Registration GST News & Announcement GSTR 9 Annual Returns GST Payments and Refunds Invoicing Under GST Income Tax Slab What is Form 16 How to File TDS Returns New Income Tax Portal Incometax.gov.in Income From Selling Shares Income Tax Due Dates How to Invest in Mutual Funds Mutual fund Types SIP Mutual Funds Memorandum of Understanding ( MoU ) Inflation & Deflation Succession Certificate Solvency Certificate Debt Settlement Agreement Rental Agreement Letters Of Credit Income tax calculator Mutual fund calculator HSN Code Finder GST number search IFSC Code Search Generate rent receipts Home Loan EMI Calculator Gold Rates Today Currency Converter Compound Interest Calculator Tax Saving Calculator Get IT refund status Salary Calculator GST Number Search by Name TRENDING MUTUAL FUNDS ICICI Prudential Technology Fund Direct Plan Growth Tata Digital India Fund Direct Growth Axis Bluechip Fund Growth ICICI Prudential Technology Fund Growth Aditya Birla Sun Life Tax Relief 96 Growth Aditya Birla Sun Life Digital India Fund Direct Plan Growth Quant Tax Plan Growth Option Direct Plan SBI Technology Opportunities Fund Direct Growth Axis Long Term Equity Fund Growth SBI Mutual Fund Nippon India mutual fund HDFC Mutual Fund UTI mutual fund Kotak Mahindra Mutual Fund ICICI Prudential Mutual Fund Aditya Birla Mutual Fund Axis mutual fund Stock Market Live Yes Bank Share Price SBI Share Price IRCTC Share Price ITC Share Price TCS Share Price Tata Motors Share Price Infosys Share Price Idea Share Price HDFC Bank Share Price Best Mutual Funds Best Tax Savings Mutual Funds Best Index Funds Best Equity Mutual Funds Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India. Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing. CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law. Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone. CLEARTAX IS A PRODUCT BY DEFMACRO SOFTWARE PVT. LTD. Privacy Policy Terms of use SSL Certified Site 128-bit encryption Looking for a business loan Thank you for your interest, our team will get back to you shortly