Input tax credit means to claim credit for the GST paid on purchases of goods and services used during the business. The input tax credit is one of the primary aspects of the overall Goods and Service Tax (GST) structure. The primary benefit being one of the smooth payment transfers across the GST system.
Due to the non-availability of credit at different points in the supply chain, the indirect taxation mechanism suffers from cascading fiscal impact. However, under the GST system, GST credit must be available across the entire supply chain at any point.
Input credit ensures you may reduce the tax you have already charged on goods at the point of payment. Let's look at the input tax credit under GST and other details such as pre-requirements and documentation involved.
To be eligible for the input tax credit under the GST system the following requirements must be met:
To assert input tax credit under GST, each claimant needs the following documents:
Vakilsearch, known for its legal service throughout India caters to each customer’s needs concerning the input tax credits. Our team of legal experts will inform you about the benefits of input tax credits, which will make it easy for you to understand. Vakilsearch has a handful of professionals who guide you in each step, making it less stressful during the registration process. Our team of GST experts at Vakilsearch can help you complete your GST registration from start to end.