Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Input Tax Credit allows a GST-registered business to reduce the tax it owes on sales by the GST already paid on purchases used for the business.
A business gets credit for the GST it already paid on its purchases, reducing its final tax bill.
ITC can only be claimed on GST-compliant invoices, with matching data reflected in GSTR-2B; ineligible on certain items like personal-use goods or motor vehicles (with exceptions).
A retailer who paid ₹18,000 GST on stock purchases can offset that against the GST collected from customers.
A business gets credit for the GST it already paid on its purchases, reducing its final tax bill.
Input Tax Credit (ITC) helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.