GST - Using input tax credit from Coursera

GST, if applicable, can be paid in cash or through the utilization of input tax credit, also commonly known as ITC. In this course, you will learn about the concept of the input tax credit, conditions , and restrictions on availing and utilizing ITC, legal requirements and procedures for reconciliation of ITC , and the concept of distribution of ITC. Input tax credits, along with valuations, play an important role in the pricing of goods and services.

This course provides a platform for learners planning to launch their careers in tax or sharpen their skills with the technical understanding of GST law in India. This program is industry agnostic and is relevant for anyone looking to acquire basic knowledge of GST. It will provide you with the skills required for entry level jobs in the fields of finance, tax, or law.

By the end of this course, you will:

- Know what is input tax credit and the conditions for availing of such credit

- Learn about the restrictions on the availment of credit and understand when credit needs to be reversed

- Know the legal requirement for performing reconciliation of purchase records and the detailed process for the same

- Identify the practical challenges one may face while performing the reconciliations

- Understand the concept of input service distributor, as well as, when and how it needs to be applied.

What's inside

Syllabus

Availing and utilising input tax credit

The GST paid on procurements is available as input tax credit and can be used to offset the output GST liability. In this module, you will learn what is input tax credit as well as the conditions and restrictions for availing input tax credit. You will also learn the process of availing input tax credit and the requirement to reverse input tax credit under various scenarios.

Reconciling input tax credit

One of the key challenges of the erstwhile tax regime was that the levy of taxes had a cascading effect. In the GST regime, this was sought to be remedied by allowing input tax credit, commonly known as ITC, on procurements. In the module on ITC, you would have learnt that ITC can only be availed if the supplier has furnished the details of the invoice in their statement of outward supplies and has paid the tax to the Government. This requires the recipient to reconcile the details of their procurements with the details furnished by the supplier on the GST portal. This reconciliation is called ‘vendor reconciliation’. In this module, we shall discuss the legal requirement and the detailed process for such reconciliation. We shall also highlight the key aspects and practical challenges faced during such reconciliation.

Distributing input tax credits

An input service distributor or ISD is a facility made available to businesses to distribute the tax paid on input services from a centralised location. By using this mechanism, a manufacturer could transfer the credit of service tax on services availed at the head office to its factories where the manufacturer had output excise liability. In this module, you will learn what an ISD is, the manner of distribution of tax, the compliance requirements and the process of reconciliation prior to tax distribution.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Explores a topic highly relevant to industry practices

Lays the groundwork for careers in accounting and finance

Taught by a reputed institution, Tax Academy

Multi-modal approach includes discussions and readings

Recommended for aspiring accountants and finance professionals

Requires learners to have a background in accounting

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in GST - Using input tax credit with these activities:

Review basic accounting principles

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Review basic accounting principles will help refresh your memory and solidify your understanding of the groundwork for accounting.

Browse courses on Accounting Principles

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Review your notes or textbook from previous accounting courses
Take practice quizzes or mock exams to test your knowledge
Watch online tutorials or videos on accounting basics

Learn about the GST Input Tax Credit

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Walk through several guided tutorials on the GST Input Tax Credit to make sure you have a solid understanding of how it works.

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Find a reputable online course or platform that offers guided tutorials on GST
Follow the tutorials step-by-step and make notes of key concepts
Practice applying the concepts you learn in the tutorials to real-life scenarios

Practice input tax credit calculations

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Calculating input tax credit will help you understand the concept better and be able to apply it in practice.

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Set up a scenario with sample invoices and purchase records
Calculate the input tax credit based on the GST paid on purchases
Reconcile the input tax credit with the supplier's GST returns

Nine other activities

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Practice GST Calculations

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Reinforces concepts of ITC calculations and helps develop proficiency in performing these calculations.

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Solve practice problems involving ITC calculation
Review and analyze solutions
Identify and correct errors

Practice calculating ITC eligibility and utilization

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Complete practice drills on calculating ITC eligibility and utilization to gain proficiency.

Browse courses on GST

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Find a website or online platform that provides practice drills on ITC calculation
Solve as many practice drills as possible, and review your answers carefully
Identify areas where you need more practice and focus on those areas

Create a summary of the key points on input tax credit

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Creating a summary will help you solidify your understanding of the concept and its key points.

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Identify the important aspects of input tax credit
Organize the information in a logical and concise way
Summarize the key points in a written format

Discuss challenges and share insights on ITC

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Connect with peers in a peer session to discuss challenges and share insights on the GST Input Tax Credit.

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Join a study group or online forum where you can connect with other students
Discuss specific challenges or questions you have about ITC
Share your own insights and experiences with ITC and learn from others

Create a Case Study on ITC Reconciliation

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Provides hands-on experience in applying ITC reconciliation concepts and enhances understanding of compliance requirements.

Browse courses on GST Compliance

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Gather data on ITC transactions
Analyze data and identify discrepancies
Prepare a detailed case study report

Develop a GST reconciliation system for a small business

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Working on a project will allow you to apply your knowledge, develop practical skills, and gain valuable experience.

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Gather requirements and design the reconciliation system
Develop the system using appropriate tools and technologies
Test the system and make necessary adjustments

Create a presentation on ITC reconciliation

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Creating a presentation on ITC reconciliation will help you gain a deeper understanding of the process.

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Gather information and data on ITC reconciliation
Organize and structure your presentation logically
Use visuals, examples, and case studies to illustrate your points
Practice delivering your presentation and get feedback from others

Volunteer at a tax preparation organization

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Volunteering at a tax preparation organization will allow you to apply your knowledge of ITC and make a meaningful contribution.

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Find a local tax preparation organization that offers volunteer opportunities
Sign up to volunteer and complete any necessary training
Assist taxpayers with preparing their tax returns, including calculating ITC
Gain practical experience and insights into the real-world applications of ITC

Participate in a GST knowledge competition

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Participating in a GST knowledge competition will test and reinforce your understanding of ITC and other GST concepts.

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Find a GST knowledge competition that aligns with your level of knowledge and interests
Study and prepare for the competition by reviewing course materials
Take the competition and give your best effort

Career center

Learners who complete GST - Using input tax credit will develop knowledge and skills that may be useful to these careers:

Tax Accountant

Tax Accountants prepare and file tax returns. They may also advise clients on tax planning and compliance. Individuals interested in becoming a Tax Accountant should consider the course on GST - Using input tax credit. This course offers a comprehensive overview of the GST system in India, including the concept of input tax credit, the conditions and restrictions for availing input tax credit, and the process of reconciling input tax credit. This course can provide a solid foundation for individuals seeking a career as a Tax Accountant.

See salaries and explore the career path for Tax Accountant

Tax Consultant

Tax Consultants provide advice and guidance on tax matters. They may also represent clients before tax authorities. The course on GST - Using input tax credit can be highly beneficial for aspiring Tax Consultants. The course offers a comprehensive understanding of the GST system in India, including the concept of input tax credit, the conditions and restrictions for availing input tax credit, and the process of reconciling input tax credit. This knowledge can provide Tax Consultants with the expertise to effectively advise their clients and assist them in navigating the complexities of GST compliance.

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Accountant

An Accountant is responsible for preparing and analyzing financial data. They ensure that records are accurate and complete, following all accounting rules and guidelines. Accountants manage accounts and prepare financial reports. They may also provide tax advice. Those interested in becoming an Accountant should consider the course on GST - Using input tax credit. The course teaches the concept of input tax credit and the conditions and restrictions for availing input tax credit. It also discusses the reconciliation of input tax credit and the practical challenges faced during such reconciliation. This course can help current Accountants build a foundation in the principles and practices of the GST system in India, which can be beneficial for their career progression.

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Auditor

Auditors are responsible for examining and verifying financial information. They provide assurance to stakeholders that the information is accurate and complete. Auditors may also provide consulting services. Individuals interested in becoming an Auditor could benefit from the course on GST - Using input tax credit. The course provides a comprehensive overview of the GST system in India, including the concept of input tax credit and the conditions and restrictions for availing input tax credit. An Auditor well-versed in GST knowledge can bring value to their organization and enhance their career prospects.

See salaries and explore the career path for Auditor

Tax Auditor

Tax Auditors review and verify tax returns. They may also assist taxpayers with tax audits. Individuals interested in becoming a Tax Auditor may find the course on GST - Using input tax credit useful. This course provides a comprehensive overview of the GST system in India, including the concept of input tax credit, the conditions and restrictions for availing input tax credit, and the process of reconciling input tax credit. This course can provide a strong foundation for individuals seeking a career as a Tax Auditor.

See salaries and explore the career path for Tax Auditor

Tax Manager

Tax Managers oversee tax planning and compliance for their organizations. They may also develop and implement tax strategies. Individuals interested in becoming a Tax Manager should consider the course on GST - Using input tax credit. This course provides a comprehensive overview of the GST system in India, including the concept of input tax credit, the conditions and restrictions for availing input tax credit, and the process of reconciling input tax credit. This course can provide a solid foundation for individuals seeking a career as a Tax Manager.

See salaries and explore the career path for Tax Manager

Compliance Manager

Compliance Managers are responsible for ensuring that an organization complies with all applicable laws and regulations. They may also develop and implement compliance programs. Individuals aspiring to be a Compliance Manager should consider taking the course on GST - Using input tax credit. This course delves into the complexities of the GST system in India, providing a comprehensive understanding of the concept of input tax credit and the conditions and restrictions for availing it. This knowledge is vital for Compliance Managers to effectively carry out their responsibilities and mitigate risks for their organizations.

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Business Analyst

Business Analysts bridge the gap between business and technology. They analyze business processes and requirements to identify opportunities for improvement. Business Analysts may also design and implement new systems and processes. To become a Business Analyst, understanding the GST system is crucial. The course on GST - Using input tax credit provides a thorough understanding of the concepts and implications of GST. It covers the conditions and restrictions for availing input tax credit, as well as the process of reconciling input tax credit. This course lays a solid foundation for aspiring Business Analysts to excel in their roles.

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Cost Accountant

Cost Accountants analyze and interpret financial data to provide insights into an organization's costs and profitability. They may also develop and implement cost-control systems. The course on GST - Using input tax credit can be beneficial for those looking to become Cost Accountants. The course provides a detailed understanding of the GST system in India, including the concept of input tax credit and the conditions and restrictions for availing it. This knowledge is essential for Cost Accountants to accurately assess and manage costs, ensuring optimal financial performance for their organizations.

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Tax Preparer

Tax Preparers prepare and file tax returns. They may also assist taxpayers with tax planning. The course on GST - Using input tax credit may be beneficial for aspiring Tax Preparers. The course provides an overview of the GST system in India, including the concept of input tax credit, the conditions and restrictions for availing input tax credit, and the process of reconciling input tax credit. This course can provide Tax Preparers with the knowledge and skills to assist their clients in complying with the GST regime.

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Consultant

Consultants provide advice and guidance to businesses and organizations. They assist clients in identifying and solving business problems. Consultants may specialize in a variety of areas, such as finance, human resources, or operations. The course on GST - Using input tax credit is valuable for aspiring Consultants, particularly those focusing on finance and taxation. The course provides a comprehensive understanding of the GST system in India and its implications for businesses. Consultants equipped with this knowledge can offer valuable advice to their clients, helping them navigate the complexities of GST compliance.

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Forensic Accountant

Forensic Accountants investigate financial fraud and other financial crimes. They may also testify in court as expert witnesses. The course on GST - Using input tax credit may be beneficial for aspiring Forensic Accountants. The course provides an understanding of the GST system in India, including the concept of input tax credit and the conditions and restrictions for availing it. This knowledge can assist Forensic Accountants in detecting and investigating fraudulent activities related to GST.

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Valuer

Valuers determine the value of assets. They may also provide consulting services related to valuation. The course on GST - Using input tax credit may be useful for those seeking a career as a Valuer. The course provides an understanding of the GST system in India, including the concept of input tax credit and its implications for businesses. This knowledge can assist Valuers in assessing the impact of GST on asset values and providing accurate valuations to their clients.

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Treasury Analyst

Treasury Analysts analyze financial data and develop investment strategies. They may also manage an organization's cash flow. The course on GST - Using input tax credit may be useful for those seeking a career as a Treasury Analyst. The course provides an understanding of the GST system in India, including the concept of input tax credit and its implications for businesses. This knowledge can assist Treasury Analysts in evaluating companies' financial performance and making informed investment decisions.

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Financial Analyst

Financial Analysts analyze financial data and make recommendations on investments. They may also provide advice on mergers and acquisitions. The course on GST - Using input tax credit may be useful for those seeking a career as a Financial Analyst. The course provides knowledge of the GST system in India, including the concept of input tax credit and its implications for businesses. This understanding can assist Financial Analysts in evaluating companies' financial performance and making sound investment decisions.

See salaries and explore the career path for Financial Analyst

GST - Using input tax credit

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