Input Tax Credit (ITC) Under GST

Input Tax Credit (ITC) is available for Goods & Services Tax (GST) paid or payable by a registered person on the purchases or expenses incurred for the business activities.
 Criteria To Claim Input Tax Credit (ITC)

  1. You must be a registered person, that’s taxable person.
  2. The goods or services must have been acquired in the course or furtherance of the business. ITC is claimable on acquisition of capital assets used in the business.
  3. Goods or services are acquired for making taxable supplies.
  4. You must hold a valid tax invoice.
  5. Tax invoices must be in the name of the registered person.
  6. No ITC shall be available on tax component of capital goods where depreciation is claimed on such tax component.

          ITC Credit adjustments

  •  ITC towards IGST shall be utilised towards IGST, CGST & SGST in that order
  •  ITC towards CGST shall be used for CGST first and balance towards IGST
  •  ITC towards SGST shall be utilised towards SGST and balance towards IGST
  •  ITC towards CGST shall not be utilised for payment of SGST


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