Claim GST input credit on AI spend

How to claim ITC (Input Tax Credit) on AI API expenses

If your business is GST-registered, every rupee spent on unoblox qualifies for input-tax-credit (ITC). This means the 18% GST you pay is recoverable against your output tax. For teams spending ₹50L+ annually on AI, that's ₹9L in tax savings—money back in your cash flow.

The mechanics

GST-registered business → Input Tax Credit

1. You buy AI API calls from unoblox (a GST-registered Indian service provider).
2. unoblox issues you a monthly invoice showing its GSTIN and the 18% GST amount, broken out by line.
3. You record the invoice in your GST portal.
4. On GSTR-2 (inbound ITC claim), the GST amount becomes a credit against your next tax liability.
5. Result: You recover the full 18% from the government; your effective cost is 18% lower.

Invoice requirements for valid ITC

Element	unoblox invoice	Why it matters
Seller GSTIN	Printed on every invoice	Proves seller is tax-registered
Buyer GSTIN	Your GSTIN, on file in Settings	Ties the claim to your account
HSN/SAC code	IT/software-services classification	Tax authority classification
Monthly usage breakdown	Input + output tokens, by model	Itemized deduction
Tax amount (18%)	Clearly stated	What you claim back

Step-by-step ITC claim

1. Verify GSTIN in your account

Log into unoblox → Settings → Billing → GST. Enter your GSTIN (format example: 27AAGCT1234A1Z5). Save.

2. Download invoices monthly

Every invoice includes CGST (9%) + SGST (9%) if you're in Haryana, or IGST (18%) if outside. Download as PDF.

3. Feed into your GST portal

On the official GST portal (www.gst.gov.in):

• Go to GSTR-2 (the inbound-credit tab).
• Match the invoice serial, date, amount, and GSTIN.
• The GST amount auto-populates in the ITC column.

4. File GSTR-3B on time

File your return by your due date each period. ITC is provisional until you file; it's final once the return is accepted.

Special cases

IGST vs CGST+SGST: unoblox is Haryana-registered. If your office is also in Haryana, you pay CGST+SGST separately (each 9%). If you're anywhere else in India, you pay IGST (18% in one line). Both are equally claimable.

Partial reverse charge: If you're a pure B2B service provider (SaaS, consulting, etc.), you claim 100% ITC. If you're a hybrid (you also sell to consumers), you might lose ITC on a percentage of purchases—your accountant can advise.

Frequently asked questions

Q: Do I need a separate invoice for ITC purposes?

No. Our standard monthly invoice is the legal document. Your accountant imports it into your GST portal.

Q: What if I'm registered in one state but using unoblox from an office in another?

Place of supply is where the service is consumed—typically the billing office you've registered. GST applies at 18%, and you claim ITC against that GSTIN.

Q: Can I claim partial ITC if I'm exempt on some revenue?

Yes—if part of your turnover is exempt (e.g., education), you can claim ITC on the taxable portion of AI spend. Your auditor allocates this via the "common inputs" method.

Q: What if I don't have a GSTIN yet?

You'll need to register once your turnover crosses the applicable threshold (roughly ₹20 lakh for services, lower in some special-category states). Registration takes about two weeks online. unoblox can backdate ITC-ready invoices once you share your GSTIN.

Q: Are there quarterly or annual ITC caps?

No caps—claim what you spend. ITC is pro-rata based on actual invoices received.

Q: Does unoblox charge for issuing ITC-compliant invoices?

No. Every invoice from unoblox includes all required fields for ITC. It's included in the price.

Get started in rupees → https://unoblox.ai/sign-in