Clear Invests $15M To Build MaxITC For Businesses To Save Input Tax Credit
As per a survey of 200 enterprises by Clear, big enterprises are losing up to 8% of their working capital. Vendor noncompliance and delay in filing GST by vendors is the biggest reason for this inefficiency
Fintech SaaS firm Clear (from the makers of Cleartax) invested US$15 million to build Max ITC for businesses to maximize their savings with ITC claims. In India, enterprises are paying an extra Rs 8,000 crores in GST payment every month. As per a survey of 200 enterprises by Clear, big enterprises are losing up to 8% of their working capital. Vendor noncompliance and delay in filing GST by vendors is the biggest reason for this inefficiency.
The lack of an automated system to manage Input tax claims, manual and offline intervention, and coordination across teams made the process prone to errors. 83% of organizations Clear surveyed are trying to block vendor payments manually to save on taxes but that is far from efficient. Clear built MaxITC, an end-to-end automated solution to manage input tax credit claims efficiently. MaxITC reduces GST taxes for Enterprises using our proprietary AI and Machine Learning platform for managing vendors and Input Tax Credits. It leverages gamification to improve vendor behavior, rewards prompt filing, and penalizes delay. It also allows businesses to set payment terms for vendors based on their ITC behavior.
MaxITC’s systems directly pull data from ERP, schedules auto reconciliations and syncs payment decisions for each invoice automatically. Its industry-leading AI-based configurable PAN-level matching compares 60,000 invoices per minute and undertakes matches across GSTINs and PAN. The AI-based engine recognizes errors made by vendors. For example, if a vendor files Maharashtra GSTIN instead of a Karnataka GSTIN, MaxITC calls out these errors. It helps save the money that businesses might not even realize they are losing.
Talking about the launch, Archit Gupta, Founder, and CEO - Clear, said, “A lot of companies do not know how they are losing out money due to vendor payments. Profitability is impacted due to vendors not filing ITC, vendors filing quarterly returns, and delayed filing by vendors. But with Max ITC, businesses can put their ITC journey on autopilot leading to 0% impact on business and working capital due to ITC.”
As per Clear’s survey, a multinational company faced a total loss of Rs 850 crores in ITC due to suboptimal management. Another lifestyle company could have saved about Rs 200 crores that were lost due to ITC mismanagement. MaxITC aims to help businesses claim accurate ITC. Clear has emerged as the largest income tax and GST tax compliance platform for more than 2800+ enterprises and 5 million consumers. Earlier this year, Clear also launched ClearOne, a billing and e-invoicing software for SMEs.