Input Tax Credit (ITC) Advisory & Optimisation

Don't Leave Your GST Credit on the Table — Claim Every Rupee You're Entitled To

✦ Maximum Legitimate ITC ✦ Supplier Compliance Monitoring ✦ No Blocked Credit Risk
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What is ITC Advisory?

Input Tax Credit (ITC) is the mechanism under GST that allows businesses to offset the GST paid on purchases against the GST collected on sales — reducing the actual tax outflow significantly. ITC is one of the most powerful and most mismanaged aspects of GST compliance. Incorrect claims, missed eligible credits, or claims on blocked credits can result in demand notices, penalties, and interest at 24% per annum.

ITC Advisory involves a structured review of your purchase register, supplier compliance status (whether your suppliers are filing their returns and reflecting your invoices correctly in GSTR-1), GSTR-2B matching, identification of blocked credits (Section 17(5)), and proactive strategies to maximise legitimate ITC claims — including ITC on capital goods, input services, and reverse charge payments.

At VITTAX, our ITC specialists perform a monthly deep-dive into your ITC position — reconciling your purchase data against GSTR-2B, flagging non-compliant suppliers, estimating unclaimed credits, and advising on how to restructure procurement to maximise credit flow. For businesses with large purchase volumes, this service can save lakhs every year in otherwise lost or incorrectly credited input tax.

⚠️ Incorrect ITC claims or blocked credit violations can result in demand notices, penalties, and interest at 24% per annum.

Who Needs ITC Advisory?

Manufacturers with large raw material purchases — where ITC is the biggest tax lever
Traders and distributors buying from multiple GST-registered suppliers
Businesses with capital expenditure — machines, equipment, construction (where ITC rules are complex)
Businesses with reverse charge mechanism (RCM) purchases — import of services, GTA, legal fees
Companies with a mix of taxable and exempt supplies needing proportionate ITC calculation
Businesses that have received demand notices for wrongful ITC claims
GST Annual Return filers preparing Table 8 reconciliation between ITC claimed and eligible

What's Included?

Monthly GSTR-2B vs. purchase register reconciliation
Supplier compliance tracking — identify suppliers not filing GSTR-1 correctly
ITC maximisation analysis — identify unclaimed credits from prior periods
Blocked credit review — Section 17(5) items (motor vehicles, personal expenses, etc.)
Proportionate ITC calculation for mixed-supply businesses
RCM ITC eligibility and timing advisory
Capital goods ITC — 60-month spread calculation and tracking
Monthly ITC position report with actionable recommendations

Pricing

Basic ITC Review

₹1,499/month

Monthly 2A/2B reconciliation

Ideal for: SMEs and traders wanting monthly ITC accuracy assurance

  • GSTR-2B vs. purchase register matching
  • Supplier-wise ITC availability report
  • Basic blocked credit flagging
  • Monthly ITC summary statement
VITTAX Fee: ₹1,499/month  |  Govt. Fees: Nil
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POPULAR

Advanced ITC Optimisation

₹3,999/month

Full ITC strategy + supplier management

Ideal for: Manufacturers, large traders, and businesses with complex ITC structures

  • Everything in Basic ITC Review
  • Supplier compliance health monitoring
  • Unclaimed ITC recovery advisory (prior periods)
  • Proportionate ITC calculation for mixed supplies
  • Capital goods ITC tracking
  • RCM ITC advisory
  • Quarterly ITC maximisation strategy session
VITTAX Fee: ₹3,999/month  |  Govt. Fees: Nil
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Frequently Asked Questions

What are blocked credits under Section 17(5)?

Section 17(5) lists specific goods/services on which ITC cannot be claimed even if used for business — including motor vehicles (with exceptions), food and beverages, beauty treatments, club memberships, works contract services for immovable property, and goods/services for personal use. VITTAX ensures your team does not accidentally claim ITC on these.

What happens if my supplier doesn't file GSTR-1?

If your supplier doesn't file GSTR-1, your purchase invoice won't appear in GSTR-2B, and technically you cannot claim ITC on that purchase. You must either follow up with the supplier or reverse the ITC. VITTAX tracks supplier compliance and alerts you in time to take corrective action.

Can I claim ITC on purchases made before GST registration?

Yes — for goods held in stock on the date of registration, ITC can be claimed in the first return. For capital goods, ITC is available on the remaining useful life. VITTAX helps you make the correct claim and avoid excess credit recovery demands.

Quick Enquiry

Basic ITC Review₹1,499/mo
Advanced ITC Optimisation₹3,999/mo

At a Glance

ReconciliationMonthly
Interest on Wrong ITC24% p.a.
Govt. FeesNil
Supplier TrackingIncluded

⚡ Key ITC Rules

Blocked CreditsSec 17(5)
Capital Goods ITC60-month spread
ITC StatementGSTR-2B
RCM ITCAdvisory Included

Recover Every Rupee of Eligible ITC

Book an ITC Audit with VITTAX → We reconcile, optimise, and protect your input tax credit every month

Book an ITC Audit with VITTAX → Talk to Expert