Just how much is spend leakage actually costing Indian businesses? A data-driven look at GST credit loss and policy violations.

Spend leakage can quietly cost Indian businesses tens of lakhs every year. This article examines three major sources of leakage: lost GST Input Tax Credit, policy violations and the hidden cost of manual expense processing. Using a representative 500-employee Indian company with ₹5 crore in annual travel and expense spend, it estimates how these seemingly small inefficiencies can combine into a significant annual financial loss. The article also explores why spend leakage remains difficult to identify and how real-time spend visibility, automated GST recovery and behavioural compliance can help businesses identify, measure and reduce avoidable spend.

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