During my exams, I was confused about the topic
what is ITC in GST. My teacher explained to me in very simple words. Here, what it was.
ITC stands for Input Tax Credit. It is a method that allows you (businesses) to claim credit for the taxes you have paid on your purchases. It can be offset against the taxes you collect on your sales. This helps avoid the cascading effect of taxes.
Here's how Input Tax Credit works:You can claim credit for the GST paid on the purchase of goods and services used for business. It includes raw materials, capital goods, and services.
You should be in possession of a valid tax invoice.
The goods or services should have been received by the taxpayer.
You should have filed your GST returns.
Not all types of GST paid can be claimed by you as Input Tax Credit. If the credit exceeds the tax liability, the excess can be carried forward to the next tax period.
You can use the ITC of one component for paying the liability of another component (like CGST/SGST.
This is the complete details of
what is ITC in GST.
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Authors Of The Question
What is ITC in GST?
Shristi
139Views
11 months
2023-11-29T18:29:39+00:00 2024-11-07T14:49:20+00:00Comment
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