Input Tax Credit is your money. Every rupee of ITC you miss — or claim wrongly and later reverse with interest — directly hits your working capital. Before you claim, run these five checks.

1. Is the invoice in GSTR-2B?

If it is not in your GSTR-2B, it is not claimable this month — no matter what your purchase register says. Chase the vendor first, claim next month.

2. Is the vendor filing their returns?

A supplier who collects GST but does not deposit it can leave your credit exposed. Periodically check the filing status of your large vendors on the GST portal.

3. Is the supply actually for business use?

  • Personal or exempt-use purchases are blocked credits.
  • Motor vehicles, food and club memberships fall under Section 17(5) restrictions in most cases.

4. Have you paid the vendor within 180 days?

Unpaid invoices beyond 180 days require ITC reversal with interest. Set a simple ageing report so this never surprises you.

5. Is the document a valid tax invoice?

A proforma invoice, quotation or delivery challan is not a tax invoice.

Check the GSTIN, invoice number, date, and tax breakup before booking the credit.

Make it a habit

Five checks, ten minutes, once a month. ITC discipline is the cheapest working-capital loan your business will ever get.