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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.

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Gst Itc On Expenses

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.

What the system does

Capability, input, output.

  • 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.

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