The Deadweight Asset: Forgetting to Claim GST Input Credit

Imagine buying a laptop for your business, paying the 18% GST, and throwing the bill into a drawer. You just threw away real money.

When you buy things for your business—like office chairs, software, or raw materials—you pay GST on them. The government allows you to subtract that amount from the GST you owe on your sales. This is called Input Tax Credit (ITC). It is essentially a cash discount on your tax bill.

But there is a catch. If your supplier forgets to upload that invoice on their portal, or if your accountant misses the matching deadline, that discount vanishes. You end up paying the tax twice.

In business, profit isn’t just about making more sales; it is about ensuring the money you already spent isn't leaking through sloppy paperwork.