ITC aka Input Tax Credit is known to be the Tax that is to be paid by the buyer of the specified goods while purchasing the same and the amount for the same is available for the buyers to avail of as a deduction from tax payable. All the people registered under GST can avail of this mechanism for Input Tax Credit under GST and claim the same on all purchases.
Input tax credit (ITC) is the backbone of GST, and GST is essential to streamline credit flows and ensure that ITCs are handled smoothly, making GST a good, transparent, and simple tax. Specific Conditions are required to be fulfilled and followed correctly to be eligible to file the returns, in addition, Input Tax Credit is a simple Process.
Furthermore, the essential requirement is a registered taxable person. Input tax credit provisions are applicable only in the case of business purchases and not for individual use. In order to correctly claim Input Tax Credit under GST, Input Tax Credit Rule is to be followed.
The time limit to claim Input Tax Credit against a debit note or an invoice is earlier than below mentioned two dates:
1. The due date for filing GST returns for September of the next financial year.
2. The date of filing the annual returns in form GSTR-9 relating to that financial year.
For more information, Visit us at: https://academy.tax4wealth.com/
No comments yet, Be the first to comment.