Client Overview
Leading Natural Ingredient Manufacturer
This company, with over 50 years in the industry, operates globally with a workforce exceeding 500. Its focus on natural ingredient production for food and flavour markets has contributed to annual revenues surpassing $100 million. Sustainability, innovation, and high-quality standards are central to its operations.
Business Need
- Refund of Input Tax Credit (ITC)
- Categorization Under Different Authorization Schemes:
- Advanced Authorization (AA) Scheme
- Non-Advanced Authorization and Common Schemes
- Monthly Reimbursement
Challenges Faced
A claim represents credits generated by raw material purchases during a month, with GST charged on all products and services. Refund eligibility depends on the scheme under which the raw materials are used for exports (e.g., Exclusive-AA, Non-AA, Common). Identifying and calculating the eligible Input Tax Credit (ITC) for each scheme can be complex.
Innoval Solutions
Develop a monthly report that calculates ITC for Exclusive-AA, Non-AA, and Common schemes based on raw material purchases and exports within the same month.
Business Benefits
- Streamlined GST Tracking
- Optimizes ITC claims, improving cash flow and cost management
- Ensures accurate reportingand adherence to tax regulations.
- Highlights areaswhere materials might not yield refunds, encouraging more strategic purchasing.