Tax & Reconciliation

GST & Input Tax Credit Control

Decide blocked credit when you buy, not when someone asks. Eligibility recorded per line with the reason attached — and the reversal position computed when an asset is written off, scrapped or disposed of.

A capability of ProcureTrail, configured by Kiren & Co as part of your professional engagement. It can be configured as part of an engagement on its own or alongside other ProcureTrail controls, depending on your organisation’s requirements. How the system fits together →

Sounds familiar?

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Credit was claimed on something blocked under section 17(5), and it surfaced at audit.

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An asset was scrapped and nobody computed the credit reversal that went with it.

The person raising the purchase does not know the rule, and the person who knows it sees the invoice months later.

What it does

Recorded at the point of decision, not reconstructed afterwards.

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Eligibility per purchase line

Each line carries whether credit is available, and where it is not, which reason applies — from a fixed list, with a note where the reason needs one.

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Eleven blocked-credit reasons

The common section 17(5) situations, recorded as structured reasons rather than free text, so they can be reported on.

Reversal when an asset leaves

Write-off, scrap, disposal and consumption each compute the reversal or output-tax position, split across the tax heads.

The conservative basis where two apply

Where more than one statutory basis could govern the reversal, the software takes the higher figure, and flags anything it cannot compute cleanly for a decision.

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Correct tax split

CGST and SGST or IGST determined from supplier GSTIN and place of supply, with genuine GSTIN check-digit validation.

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A blocked credit register

Purchases where credit is not available, with reasons, exported for review.

See it on a real decision

Two things are worth seeing: a purchase line where credit is refused, and an asset leaving.

Blocked credit register

Purchases where credit was not available, with the reason recorded against each line.

A disposal, worked through

An asset scrapped, and the reversal position the software computes for it.

Line-level detail

How the decision is captured at the point the purchase is raised.

What this is, and what it is not

Section 17(5)

Eligibility decided and recorded per line, with a structured reason where credit is blocked.

Reversal on disposal

The credit consequence of write-off, scrap, disposal or consumption, computed on the conservative basis where two could apply.

Not GSTR-2B reconciliation

Oparc does not match your purchase register against GSTR-2B. That is invoice-level portal matching and is a different tool.

Not tax advice

The software computes and records a position on rules configured for your organisation. The judgement remains yours and your advisor’s.

Often deployed with

Turned on per organisation. Same register, same audit trail, same login — no second system, no migration.

Common questions

What does “per line” mean here?

Eligibility for input tax credit is recorded against each purchase line rather than decided for a whole invoice or a whole batch. Where credit is not available, the reason is recorded against that line from a fixed list, with a note where the reason requires one.

Which blocked-credit reasons are available?

Eleven, covering the common section 17(5) situations — motor vehicles, food and beverage, construction of immovable property, gifts, samples and staff welfare, corporate social responsibility, club, health and travel benefits, composition dealers, invalid invoices or GSTIN, place-of-supply blocks, personal consumption, and an explicit “other” that requires a note.

What happens to credit when an asset is written off or scrapped?

The software computes the reversal or output-tax position for that event. Where two statutory bases could apply, it takes the higher of them, which is the conservative outcome. Where a figure cannot be computed cleanly it is flagged for a decision rather than guessed.

Does this reconcile GSTR-2B against our purchase register?

No. That is a different problem — invoice-level matching against the portal — and Oparc does not do it. What Oparc does is decide and record eligibility at the point of purchase, and compute the reversal position when an asset leaves.

Is the CGST/SGST versus IGST split handled?

Yes, from the supplier’s GSTIN and the place of supply, with a real GSTIN check-digit validation rather than a length check.

Can this be switched on gradually?

Yes. Per-line credit tracking is a separate switch from credit tracking generally, so an organisation can adopt it when it is ready.

Want to see how a blocked line is caught?

We will show you a purchase where credit is refused, the reason recorded against it, and what happens to that asset when it is eventually scrapped.