Can companies avail input tax credit for most of their business expenses

Dear Friends,

The New GST reforms will clear all errors in the GST input credit process. This will reduce down the tax burden on companies or business owners So that the benefit can be shared with customers by lowering the cost of products or services.

The input tax credit is one of the important features of GST, “Any GST registered person can avail GST input tax credit paid on the inward supply of goods or services which is used for the growth of the business. Under the current GST tax regime, if a retailer purchases a fridge, under GST, he can claim input tax credit paid on the new fridge when he files taxes. Also, the input tax credit could be claimed on the tax paid on taking a client for lunch, or on goods or services used for companies' CSR (corporate social responsibility). In GST, the input tax credit can be availed on all business expenses except employee benefits and construction. The new GST system is much more business-friendly and will increase the credit pool for the companies/ businesses.

As a business owner or company, are your vendors are giving you SGST (Local GST Invoices), and since you don’t have a GST Registration in that state, you are losing out on availing the entire 18% GST Input Credit.

Yes, we understand 18% is a lot of margins to loose for any business.

But every business which is dealing with immovable assets/properties, can’t raise IGST invoices as the income is derived from an immovable asset of that particular state, and that is why is the entire GST has to go to that particular state, and hence IGST (inter-state) GST invoices can’t be raised. Therefore we have cost-effective, quick and convenient (entirely online) solutions for you to avail stuck GST Input credit in any state of the country.

Solution for GST input tax credit: Virtual Office for GST Registration (In all 29 States)

For any purchasers, to avail GST Input credit on local invoices (SGST Invoices), both the parties of the invoice should be from the same state only. Therefore, the business has to have a GST Registration in all those states where their GST is getting stuck because of SGST invoices. For applying for GST Registration in any state, address proof of that state is mandatory. Now, a business can either rent space in that state for getting the NOC & Agreement or can avail of this solution through a cost-effective virtual office solution. Virtual Offices provides your professional business address in business centers/co-working spaces, along with the following documents, required for GST Registration.

Documents provided with Virtual Office are:

• NOC (No Objection Certificate)
• 12 Month Rent Agreement (on Stamp Paper)
• Electricity Bill
• GST Signage

With these documents, one can simply apply for GST registration in all such states where their GST Input credit is getting stuck. The entire GST registration process is completely online; therefore all the documentation work is completed online, without you having to move from your current location.

The best part, you can avail of this solution starting INR 1000/month.