Posted on by abhishek

What is Input Tax credit?

  1. Input tax credit means the credit of central tax, state/ union territory tax and integrated tax available to a registered person on the inward supply of goods or services or both, made to him excluding the tax paid on supplies liable to composite tax.
  2. It further includes the integrated tax applicable on import of goods or services and the tax payable under reverse charge mechanism.

(ICAI FAQ PUBLICATION 06-09-2017 INPUT TAX CREDIT: FAQ NO.2)