What is ITC ?

Last updated at April 16, 2024 by

We know that 
Tax on Purchase is called Input GST 
Tax on Sales is called Output GST
GST Credit=Input GST-Output GST
 
This Input GST is technically called Input Tax Credit (ITC)
This GST Credit is technically called Closing Input Tax Credit (ITC)

 

What is ITC.jpg

Question

Suppose in April

Purchase of a Company= 20000

Sales of a Company =30000

GST Rate =5%

What is ITC of April

View Answer

 

 

 

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Transcript

WHAT IS INPUT TAX CREDIT Output GST Input GST ( This is Called Input Tax Credit or ITC GST payable GST Credit ( This is called Closing ITC or teachoo.com

CA Maninder Singh's photo - Co-founder, Teachoo

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.