Step 01
GSTIN captured at OCR
The OCR captures the GSTIN on the receipt; the system validates against the company's registered GSTINs.
Expense Management | GST ITC on Expenses
GST ITC captured on every B2B-eligible expense. Validated, matched, claimed.
GSTIN on the invoice flagged at capture. ITC eligibility validated per Section 16. Hotel, taxi, restaurant, software and other B2B-eligible expenses route to GSTR-2B reconciliation. Personal expenses correctly excluded from ITC.
How most teams handle expense ITC today
ITC on travel: claimed by some, missed by most.
A finance team that doesn't systematically capture expense ITC typically loses 1 to 3% of total ITC value to expenses. The pattern looks like:
- Hotel invoices with company GSTIN go in as personal-style reimbursements; the GSTIN is never captured.
- Taxi receipts (Uber for Business, Ola Corporate) carry company GSTIN, but the ITC is not claimed.
- Software subscriptions (Zoom, Slack, Notion) bill the company GSTIN; the ITC sits unclaimed because no one knew.
- GSTR-2B shows the supplier's filing for the company GSTIN, but the books don't have the matching expense, so the ITC is never booked.
Capturing the GSTIN at the receipt and routing the ITC through the same GSTR-2B reconciliation as vendor bills closes this leak.
How it works
From receipt GSTIN to ITC claimed.
Step 02
ITC eligibility flagged
B2B-eligible categories (hotel, taxi, restaurant, software, training) flagged. Section 17(5) blocked items (food at staff cafeteria, club membership, motor vehicle expenses below threshold) excluded.
Step 03
Posts as ITC-eligible expense
On approval, the expense posts with the GSTIN, the ITC amount and the eligibility flag. The ITC carries to the books and to GSTR-2B reconciliation.
Step 04
GSTR-2B match
The supplier's filing in GSTR-2B is matched against the captured expense. Mismatches surface for vendor follow-up. Confirmed ITC posts to GSTR-3B.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| GSTIN capture at OCR | Receipt + OCR | GSTIN extracted with confidence |
| Company GSTIN validation | Captured GSTIN + company master | Match or mismatch flag |
| ITC eligibility | Category + Section 16 + Section 17(5) | Eligible / blocked / restricted flag |
| GSTR-2B match | Posted expense + supplier filing | Match status in 2B recon |
| GSTR-3B integration | Confirmed ITC | Posted to GSTR-3B Table 4(A) |
-
GSTIN capture at OCR
- Input
- Receipt + OCR
- Output
- GSTIN extracted with confidence
-
Company GSTIN validation
- Input
- Captured GSTIN + company master
- Output
- Match or mismatch flag
-
ITC eligibility
- Input
- Category + Section 16 + Section 17(5)
- Output
- Eligible / blocked / restricted flag
-
GSTR-2B match
- Input
- Posted expense + supplier filing
- Output
- Match status in 2B recon
-
GSTR-3B integration
- Input
- Confirmed ITC
- Output
- Posted to GSTR-3B Table 4(A)
Compliance + integrations
ITC captured at the source, claimed at the filing.
ITC on expenses follows the same Section 16 conditions as ITC on vendor bills. Capturing it at the receipt, validating against the company GSTINs and matching to GSTR-2B is the difference between claimed and missed.
Regulations we work within
-
Section 16, CGST Act
ITC eligibility validated at capture.
-
Section 17(5)
Blocked credits (motor vehicles, club membership, food cafeteria) excluded automatically.
-
Rule 36(4)
ITC capped to 2B amount; surfaced before 3B filing.
Connects to
- GSTR-2B reconciliation Same recon as vendor bills
- GSTN Authorised GSP
GST ITC on Expenses FAQ
What buyers ask.
Hotel ITC for an employee on travel. Eligible?
Hotel accommodation for business travel is generally B2B-eligible if the invoice carries the company GSTIN, the company name and the right state. The system validates these conditions and flags the ITC. Mismatched GSTIN (employee's personal name on invoice, wrong state) excludes from ITC.
Taxi (Uber, Ola). How is ITC captured?
Uber for Business and Ola Corporate issue B2B invoices with the company GSTIN. The system captures the GSTIN from the invoice; the ITC is eligible at the standard rate (5% on radio taxi, 18% on rental). Section 17(5) excludes ITC on motor vehicles below the threshold; passenger transport services on cab aggregators is allowed.
Software subscriptions (Zoom, Slack, Notion). How is ITC captured?
Where the supplier issues a tax invoice with the company GSTIN, the ITC is eligible at the GST rate (typically 18% for SaaS). Foreign suppliers (US-based Zoom, Slack) attract RCM under Section 9(3) (import of services); the system tags this and posts the RCM workflow.
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Run last quarter's travel expenses through the ITC engine.
Free trial, one entity. The system captures GSTINs from your last quarter's expenses, validates against your company GSTINs, surfaces ITC missed and routes the eligible to GSTR-2B match.