Indian Company Master Data Made Simple

Input Tax Credit (ITC)

3 min read

Quick Summary

ITC allows businesses to claim credit for GST paid on purchases.

ITC is available for GST paid on goods/services used for business. Conditions: possession of tax invoice, receipt of goods/services, tax paid to government, and filing of return. Reversal required for non-payment within 180 days.

Key Points

  • Credit for tax paid
  • On business purchases
  • Requires tax invoice
  • Filed in GSTR-3B
  • Reversal if non-payment