{"id":26162,"date":"2021-02-18T12:36:31","date_gmt":"2021-02-18T07:06:31","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=26162"},"modified":"2021-02-18T12:36:33","modified_gmt":"2021-02-18T07:06:33","slug":"input-tax-credit-mechanism-under-gst-administration","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/input-tax-credit-mechanism-under-gst-administration\/","title":{"rendered":"Understanding on Input Tax Credit Mechanism under GST Administration"},"content":{"rendered":"\n

Input tax credit is the tax paid on purchase of goods and services by the buyer at the time of paying taxes on output, the buyer can reduce the tax as he has already paid the tax in inputs. In simple words, Input Tax Credit Mechanism means to reduce the tax paid on inputs from taxes to be paid on output.<\/p>\n\n\n\n

When\nany services or goods are supplied to a taxable person, the GST charged is\nknown as Input Tax. So, Input Tax Credit means to claim\ncredit on the paid GST on purchase of Goods and Services which are utilised for\nfurthering the business. Being the backbone of GST the Input Tax Credit\nmechanism is one of the major reasons for the introduction of GST.<\/p>\n\n\n\n

The Goods and Services Tax<\/strong><\/a> is the sole tax levied in whole of the India starting from the production and manufacture of the goods and services until it reaches the end customer. This chain does not get broken and everybody is able to take benefit of the same and hence there is smooth credit flow.<\/p>\n\n\n\n

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