GST
ITC (Input Tax Credit)
Credit available to GST-registered businesses for GST paid on business purchases, which reduces their GST payable.
Full Definition
Input Tax Credit (ITC) allows GST-registered businesses to reduce their output tax liability by the GST already paid on inputs (purchases). ITC can be claimed only if: (a) the supplier has filed GSTR-1 and the invoice appears in GSTR-2B, (b) goods/services are used for business purposes, (c) the tax invoice is in your possession, (d) you have not claimed depreciation on the GST component. ITC cannot be claimed on: personal use, food and beverages, construction (except contractors), motor vehicles for personal use, and blocked credits under Section 17(5).
More GST terms
GSTIN (Goods and Services Tax Identification Number)
Unique 15-digit registration number assigned to every GST-registered business.
GSTR-1
Monthly/quarterly return for outward supplies (sales) filed by GST-registered businesses.
GSTR-3B
Monthly summary return where GST liability is declared and payment made.
GSTR-9 (GST Annual Return)
Annual reconciliation return filed by regular GST taxpayers, summarising the full year's GST transactions.
GSTR-2B
Auto-generated monthly statement showing ITC available from suppliers' GSTR-1 filings.