Calculate your ITC set-off, net cash payable, sub-contractor claw-back risk, and annual reconciliation leakage — all in one place, benchmarked against GSTN data.
GST Input Tax Credit is the GST you paid on your business purchases — material, equipment hire, sub-contractor services — that you are entitled to set off against the GST you collect on your own billing. The set-off, governed by Rule 88A and Section 49 of the CGST Act, means the net amount you pay to the government via the Electronic Cash Ledger is output GST minus available ITC. When ITC is missed, that set-off shrinks and cash payable rises — even though you have already paid GST to your vendors. The four main reasons ITC gets missed: (1) vendor invoices not matched against GSTR-2B before filing, (2) sub-contractors who charge you GST but fail to file their own return — creating a GSTR-2B gap, (3) blocked purchases (Sec 17(5)) inadvertently mixed into the claim, (4) purchases from composition-scheme or unregistered vendors that never carried ITC to begin with.
A contractor purchasing ₹15 lakh/month at 18% GST has ₹2.7 lakh in monthly purchase-side ITC. Against an output GST bill of ₹2.7 lakh (e.g. 18% on ₹15L of billing), perfect reconciliation means zero cash payable. At an 82% reconciliation rate, only ₹2.21L of ITC is claimed — so ₹49,000/month flows out of the cash ledger unnecessarily. Over a year, that is ₹5.9 lakh in avoidable cash outflow, purely from a reconciliation process gap. On top of that, if 25% of sub-contractors (who represent ~35% of spend) are non-compliant, another ₹2.4 lakh per year of claimed ITC is at claw-back risk on scrutiny.
Top-performing finance teams reconcile purchase invoices against GSTR-2B monthly — not quarterly, not annually — and treat the monthly reconciliation deadline as fixed before GSTR-3B is filed. Sub-contractor compliance is treated as a procurement prerequisite, not an afterthought: GSTIN verification and return filing confirmations are built into the payment release process. Capital goods ITC is tracked separately (1/60th per month, Rule 43) and carry-forward balances are checked from the Electronic Credit Ledger each period before computing net payable. Blocked ITC (Sec 17(5)) is coded separately at the purchase entry stage so it never inadvertently enters the claim pool.
Experienced contractors treat GST reconciliation as a month-end close checklist item, not a filing-day scramble. They pull GSTR-2B on the 14th of each month (available after vendors file GSTR-1), compare it line by line against the purchase register, follow up on gaps immediately, then file GSTR-3B claiming only reconciled ITC. Sub-contractor compliance is handled at procurement: GSTIN verification is a mandatory empanelment step, and the payment-release checklist includes confirmation of the sub-con's last GSTR-3B filing. Capital goods ITC is tracked in a dedicated register. Carry-forward balances from the Electronic Credit Ledger are pulled first — before the reconciliation exercise — so the net cash payable figure is computed accurately each period.
Rebota's GST Reconciliation module tracks every purchase invoice against GSTR-2B filing status, surfacing unreconciled invoices before the filing deadline — not after credit is permanently lost. The vendor compliance dashboard flags sub-contractors who have not filed their returns, enabling payment-hold decisions before releasing funds. Capital goods ITC is amortised automatically. The Electronic Credit Ledger balance is factored into the net payable projection so finance teams see the real cash outflow, not a gross liability figure.