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TaxationStartup Founder

D2C Fashion Brand GST Restructuring

Restructured third-party manufacturer agreements and supply-chain shipping points to release capital trapped in mismatched GSTR-2B logs.

~40% ReductionBlocked ITC Allocation
Situation / Challenge

A Chennai-based D2C fashion brand had accumulated significant blocked input tax credit (ITC) from third-party manufacturing sub-contractors, with differences between internal books and dynamic GST portal records (GSTR-2B) locking up working capital.

DSS Advisory Approach

DSS Corp audited three years of raw materials inputs and sub-contractor processing fees, re-structured processing terms to qualify for flat offsets, and implemented automated reconciliation rules for billing records matching.

  • Audited three years of raw materials input tax receipts.
  • Restructured sub-contractor processing fees to allow flat GST offsets.
  • Established automated vendor reconciliation rules.
Factual Result & Metrics

Released approximately 40% of previously blocked input tax credits, restoring active cashflow to operations and ensuring 100% compliance in GSTR-3B filings.

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Anonymized For Privacy

To comply with ICAI guidelines and preserve client corporate confidentiality, names are omitted. Factual details, metrics, and outcomes are fully verified.