GST Input Tax Credit

GST Input Tax Credit (ITC) allows businesses to offset the GST paid on purchases against the GST collected on sales. It ensures that tax is levied only on the value added at each stage of the supply chain, preventing tax cascading. To claim ITC, the purchase must be from a registered dealer, and the goods or services should be used for business purposes. Proper documentation, such as tax invoices, is required for ITC claims under India’s GST laws.