clear: Clear announces APIs to help businesses recover unclaimed input tax credits


Clear (Previously Clear Tax), one of the largest SaaS fintech companies in India, announced the launch of APIs that allow companies to recover their blocked data Input tax credit (ITC) and automate supplier payments. These APIs are fully integrated with enterprise ERPs. By triggering Clear’s APIs, companies are able to perform four-way automation. Clear claims that this automation can recover blocked ICC claims and reduces reconciliation, supplier profiling and payment efforts. The company estimates that the locked-in ITC is in the range of Rs 8,000 crore for Indian companies on an annual basis.
First, the APIs pull purchasing data from the company’s ERP. Without ERP integration, this is a time-consuming process because the quality of purchasing data in the ERPs is not optimal, and therefore there is a margin of error and a lot of time is spent on correct it manually. In the second step, APIs calls to the government database allow reconciliation of GSTR-2A with ERP purchasing data, thus enabling reconciliation with the government portal.
In the third step, API calls create vendor profiling by summarizing vendor compliance behavior. A sophisticated vendor risk profile is created based on whether the vendor is low, medium, or high risk. Finally, these APIs then send data back to the ERP for payment blocking. This reconciliation allows companies to recover all blocked ITC claims and save working capital. Clear claims to have solutions that enable businesses to create tighter accounting and accounts payable processes.
“Supplier non-compliance results in financial exposure for a company. Regulators now have little tolerance for late or inaccurate filings. We understand how deeply this issue affects Indian businesses. Our solution will radically simplify the way businesses tackle tax payment and vendor management. said the founder and CEO, Archit Gupta.
In October 2021, Clear raised $75M in Series C funding led by Capital of the Kora, Stripe, capital of AluaThink Investments and existing investors to facilitate expansion into B2B credit, payments plus and international markets.

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