Input Tax Credit under GST | Section 16 to 18 | CGST Act 2017
Input Tax Credit under GST | Section 16 to 18 | CGST Act 2017 By Vishal Joshi I nput T ax C redit (ITC) means the amount of tax paid on the purchase of Input Goods, Input Services, and Capital Goods and includes tax paid under Reverse charge. Then at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount. This mechanism is called the utilization of input tax credit. Due to this mechanism, Input Tax Credit is the backbone of the GST regime because these provisions of ITC make GST a value-added tax i.e. a collection of tax at all points after allowing credit for inputs . Section 16: Eligibility and conditions for taking Input Tax Credit 1. Eligibility Criteria : Every Registered Person shall be entitled to take Input Tax Credit on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and said amount will be credited to the electronic credit led