Input Tax Credit
Also known as: ITC
Input Tax Credit (ITC) is the credit a business gets for GST paid on its purchases, which it sets off against GST collected on sales so tax is paid only on value added.
ITC is conditional: the supplier must have filed their return so the invoice appears in your GSTR-2B, you must have the tax invoice and have received the goods or services, and the supplier must have paid the tax. Blocked credits (e.g. on motor vehicles, personal consumption) cannot be claimed.
Related terms
General information, not tax, legal or accounting advice. Thresholds and timelines change by notification — confirm applicability with your CA, CS, or lawyer.
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