GST Claim: How to Get Your Input Tax Credit Right in India

When you run a business in India, a GST claim, a process allowing registered businesses to recover tax paid on purchases used for business purposes. Also known as input tax credit, it’s not a bonus—it’s your money back. But only if you follow the rules exactly. Too many businesses miss out because they file wrong, forget documents, or assume every expense qualifies. The law is clear: you can claim GST only on goods and services used directly in your business operations. That means raw materials, office supplies, logistics, software subscriptions—even rent for your shop or factory. But not your personal car, meals with friends, or luxury office decor.

What trips people up? input tax credit, the amount of GST you’ve already paid on business inputs that you can offset against your own GST liability isn’t automatic. You need valid invoices with correct GSTINs, your supplier must have filed their returns, and you must match your purchase records with what’s in the GSTN portal. If your vendor didn’t upload their GSTR-1, your credit won’t show up—even if you paid. And if you claim credit on something like a personal phone or a vacation, the GST department will catch it. Penalties aren’t just fines—they can freeze your ability to file future returns.

GST filing, the mandatory process of reporting sales, purchases, and tax liabilities to the government isn’t just paperwork. It’s the backbone of your claim. You need to file GSTR-3B every month and GSTR-1 every quarter, and both must line up. Missing one deadline can delay your refund for months. And if you’re a small business, don’t assume you’re exempt. Even if you’re under the turnover limit, once you register for GST, you’re bound by the rules—claims and all.

It’s not about being perfect. It’s about being consistent. Keep your invoices organized. Match your books with the GST portal weekly. Don’t wait until the end of the quarter to check for mismatches. The system doesn’t forgive last-minute fixes. And if you’re unsure, don’t guess. A wrong claim today can turn into a notice tomorrow.

Below, you’ll find real guides from businesses that got it right—and those that didn’t. Whether you’re filing your first GST claim or trying to fix a rejected refund, you’ll find step-by-step help on what to do, what to avoid, and how to make sure your money comes back where it belongs.