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Boost your bottom line by up to 7% by using ITC Ultra with payment hold
Check invoice compliance status against the GST portal, and even check vendor compliance history. Hold GST component of payment where required with just the press of a button.
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Safe and secure. Compliant with RBI guidelines & IndAS
Talk to Sales
Safe and secure. Compliant with RBI guidelines & IndAS
Trusted by more than 3000 companies
The Problem Today
Losses on ITC recovery can reduce profits by up to 7% annually
There is lack of visibility on whether a vendor has filed an invoice on the GST portal. Once the invoice is paid, you’ll lose out input tax credit unless the vendor files the invoice on the GST portal.
Compliance is ignored
Invoices are rarely checked for compliance issues - struck off PANs, incorrect GST, MSME,
e-invoice checks and more.
No central database
Invoices and vendor data is distributed, and often inaccessible when required for audits and future reference.
Unreliable OCR systems
Legacy OCR scanning only offers about 65% accuracy, reducing trust in the system and leaving invoices to be checked manually.
The Problem Today
AP teams spend 100s of hours booking invoices
This is not only a waste of time and productivity, but many a times the invoice booking process has compliance loopholes, uses outdated technology and there is no central storage system for audit readiness and future reference.
Compliance is ignored
Invoices are rarely checked for compliance issues - struck off PANs, incorrect GST, MSME,
e-invoice checks and more.
No central database
Invoices and vendor data is distributed, and often inaccessible when required for audits and future reference.
Unreliable OCR systems
Legacy OCR scanning only offers about 65% accuracy, reducing trust in the system and leaving invoices to be checked manually.
Non-compliance discovery
Vendors may be non-compliant with GST or the invoice might not have been filed. In either case, you lose out on your ITC.
No way to hold payments
Even once you discover non-compliance, holding payments & informing vendors is a completely manual process.
Relentless followup required
Once you make the invoice payment, you’re at the mercy of the vendor filing GST to get access to your input tax credit.
Presenting ITC Ultra with Payment Hold built for AP and GST teams
Save on ITC losses
Boost your bottomline by up to 7% by making proactive savings on ITC losses
90% of businesses lose up to 7% of profits due to ITC losses caused by non-compliant vendors. Solve for this issue with GST check and hold.
Check GST Status
Check GST status at both vendor and invoice level for every payment
Check if vendors are GST compliant and check their compliance history by referencing past invoice filings. Also check if they’ve filed the current invoice on GST the portal - before you make the payment.
Withhold GST
Withhold GST component of the payment from non-compliant vendors
Hold GST with a simple toggle while making payments. Intimate vendors to file the invoice on the GST portal. Release GST component once compliance is met.
Inform Vendors
Proactively inform vendors about GST deductions, prompting them to file GST
Send a detailed payment advice, clearly indicating that the GST component of the payment has been withheld pending filing of the invoice on the GST portal.
ERP & WMS Sync
Powerful ERP & WMS Sync for all your GST details. Works with all ERPs.
Sync your GST amounts, compliance details and invoices with SAP, SAP B1, Ohana, Oracle, MS Dynamic and many more ERPs.
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What is ITC & ITC Ultra With Payment Hold?
Input Tax Credit (ITC) is a mechanism under the Goods and Services Tax (GST) framework that allows businesses to reduce their tax liability by claiming credit for the GST paid on purchases used in their operations. This ensures that the tax is levied only on the value addition at each stage of the supply chain. Understanding about input tax credit is crucial for maintaining GST compliance and optimizing financial performance.
ITC Ultra With Payment Hold is a system designed for Accounts Payable (AP) and GST teams to manage and optimize Input Tax Credit (ITC). It enhances compliance by tracking GST status, withholding payments to non-compliant vendors, and ensuring seamless ERP integration. This system helps in ITC reconciliation and prevents blocked credit under GST by addressing ITC payment hold reasons such as discrepancies in returns and vendor non-compliance.
ITC Ultra With Payment Hold is a system designed for Accounts Payable (AP) and GST teams to manage and optimize Input Tax Credit (ITC). It enhances compliance by tracking GST status, withholding payments to non-compliant vendors, and ensuring seamless ERP integration. This system helps in ITC reconciliation and prevents blocked credit under GST by addressing ITC payment hold reasons such as discrepancies in returns and vendor non-compliance.
Features of ITC Ultra With Payment Hold
Maximize Savings: Boost bottom line by up to 7% with proactive input tax credit savings.
GST Status Tracking: Monitor gst input tax credit compliance at vendor and invoice levels.
Manage Non-Compliant Vendors: Automatically withhold gst tax input credit payments from non-compliant vendors.
Vendor Communication: Inform vendors about GST input tax claim deductions to prompt timely filing.
ERP & WMS Integration: Sync input tax credit under gst details with major ERPs and WMS.
GST Status Tracking: Monitor gst input tax credit compliance at vendor and invoice levels.
Manage Non-Compliant Vendors: Automatically withhold gst tax input credit payments from non-compliant vendors.
Vendor Communication: Inform vendors about GST input tax claim deductions to prompt timely filing.
ERP & WMS Integration: Sync input tax credit under gst details with major ERPs and WMS.
Benefits of ITC Ultra
Seamless Input Tax Credit (ITC) Reconciliation
ITC Ultra simplifies the complex process of ITC reconciliation, ensuring accurate matching of GST returns. This reduces mismatches in GST input tax credit claims and helps maintain smooth GST compliance.
Proactive GST Fraud Detection
With advanced monitoring, ITC Ultra helps identify potential GST fraud, including false claims of input tax credit. It improves security by detecting suspicious activities and preventing ineligible input tax credit from being claimed.
Resolution of ITC Payment Holds
ITC Ultra identifies ITC payment hold reasons, helping businesses resolve blocked credit under GST. By ensuring compliance with GST ITC claiming rules, it accelerates input tax credit claims and smoothens the GST process.
Steps to Resolve ITC Hold
1. Reconcile GST Returns: Address GST return mismatches by performing thorough ITC reconciliation to resolve discrepancies and ensure accurate input tax credit claims.
2. Ensure Timely Filing: File GST returns promptly and accurately to avoid blocked credit under GST and prevent potential GST fraud detection issues.
3. Manage Vendor Compliance: Work closely with vendors to ensure compliance and accurate reporting, minimizing ineligible input tax credit and blocked ITC issues.
4. Maintain Proper Documentation: Keep detailed records of all transactions and ITC claims to support GST input tax credit audits and streamline the resolution of any payment hold reasons.
2. Ensure Timely Filing: File GST returns promptly and accurately to avoid blocked credit under GST and prevent potential GST fraud detection issues.
3. Manage Vendor Compliance: Work closely with vendors to ensure compliance and accurate reporting, minimizing ineligible input tax credit and blocked ITC issues.
4. Maintain Proper Documentation: Keep detailed records of all transactions and ITC claims to support GST input tax credit audits and streamline the resolution of any payment hold reasons.
Best Practices for Avoiding ITC Holds
1. Regular Reconciliation Processes: Conduct consistent ITC reconciliation to detect and address GST return mismatches early, preventing issues with blocked credit under GST.
2. Stay Updated with GST Regulations: Keep informed about GST ITC claiming rules and GST compliance updates to ensure accurate claims and avoid complications related to GST fraud detection.
3. Vendor Due Diligence: Ensure vendors comply with GST input tax credit rules and provide accurate documentation to avoid issues with ineligible input tax credit.
4. Use Technology for Compliance Management:
Leverage technology to streamline GST compliance, manage input tax credits effectively, and automate documentation processes to reduce the risk of ITC payment holds.
2. Stay Updated with GST Regulations: Keep informed about GST ITC claiming rules and GST compliance updates to ensure accurate claims and avoid complications related to GST fraud detection.
3. Vendor Due Diligence: Ensure vendors comply with GST input tax credit rules and provide accurate documentation to avoid issues with ineligible input tax credit.
4. Use Technology for Compliance Management:
Leverage technology to streamline GST compliance, manage input tax credits effectively, and automate documentation processes to reduce the risk of ITC payment holds.
Implications of ITC Payment Hold
1. Impact on Cash Flow: An ITC payment hold can strain a business's cash flow due to GST return mismatches or other issues. Proper GST compliance and ITC reconciliation are crucial to minimize liquidity problems.
2. Interest and Penalties: Delays in GST input tax claims from blocked credit or fraud detection can lead to interest and penalties. Understanding GST ITC rules and managing eligible credits can help avoid these costs.
3. Increased Compliance Burden: Managing ITC requires meticulous tracking and timely filing, increasing the compliance burden. Staying informed about GST ITC rules is essential to avoid issues and efficiently handle input credits.
2. Interest and Penalties: Delays in GST input tax claims from blocked credit or fraud detection can lead to interest and penalties. Understanding GST ITC rules and managing eligible credits can help avoid these costs.
3. Increased Compliance Burden: Managing ITC requires meticulous tracking and timely filing, increasing the compliance burden. Staying informed about GST ITC rules is essential to avoid issues and efficiently handle input credits.
Frequently Asked Questions
How can ITC reconciliation help with GST compliance?
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What are common ITC payment hold reasons?
How can I resolve issues with blocked credit under GST?
What are the GST ITC claiming rules?
How does GST fraud detection affect ITC claims?
What is the impact of GST return mismatch on ITC?
Can ITC be claimed on capital goods?
How does technology help in managing ITC?
What is the difference between eligible and ineligible input tax credit?
How can businesses prevent issues with ineligible input tax credit?
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