ITC

Input Tax Credit

Credit of GST paid on purchases, used to offset GST on sales.

What is ITC?

ITC is the cornerstone of GST — every business pays output GST minus input GST. Claimable only if (a) you have a valid tax invoice, (b) supplier has filed GSTR-1, (c) goods/services received, (d) tax paid to govt. Reflects in GSTR-2B.

Who needs ITC?

Every GST-registered business.