Goods & Service Tax

Input Tax Credit

GST reconciliation involves matching of sales and purchases data between different returns as well as sales and purchase registers. under GST, this process has gained significance as the sanity of the input tax credit utilised by businesses is closely and regularly monitored by the GST authorities with the help on the online taxation system. Also, the taxpayers must regularly reconcile their data every month with the data declared by their vendors.

Document Required

1. An invoice issued by the supplier of goods or services
2. Invoice issued by the recipient of goods and services supplied by an unregistered dealer. Such supply comes under the reverse charge mechanism. This mechanism involves supplies made by an unregistered person to a registered person.
3. A debit note issued by the supplier if the tax charged is less than the tax payable in respect of such a supply.
4. A bill of entry or any similar documents is required to document an integrated tax on imports.
5. An invoice or credit note issued by an input service distributor as per the rules under GST.
6. A supply bill by a dealer opting for a composition scheme or an exporter or supplier of exempted goods.