Taxation · Input Tax Credit
Input Tax Credit (ITC) is a critical feature of GST because it seeks to reduce cascading. The basic idea of ITC is that a registered taxpayer may:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Defer all tax payment until final assessment by authorities
- 2Convert direct tax liability into indirect tax credit
- 3Avoid paying any GST if annual turnover is high enough
- 4Claim credit for tax paid on inputs against tax liability on outward supplies, subject to conditions✓
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Claim credit for tax paid on inputs against tax liability on outward supplies, subject to conditions
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