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Input Tax Credit is the tax a buyer pays on the purchase of goods or services. Input credit means that when you pay output tax, you can deduct the tax you have already paid on the input.<\/p>\n
In terms of the GST<\/a> ITC rules, the input tax credit refers to the SGST<\/a>\/UTGST, CGST<\/a> or IGST charged on the supply of goods or services made. It also includes IGST<\/a> on import and tax payable under the reverse charge mechanism.<\/p>\n If you are an e-commerce operator, manufacturer, aggregator, agent, or supplier registered with GST, then you can claim an input tax credit for the tax you paid on your purchases.<\/p>\n Suppose you bought products worth INR 100 and paid INR 10 as GST on it at the rate of 10%. Now, when you sell these products at INR 150 and the GST on it is INR 15 (at the rate of INR 10%), the net tax liability will be INR 15 less INR 10 i.e., INR 5 (15 \u2013 10 = 5).[\/vc_column_text][vc_column_text]