JKSSB & COMPETITIVE EXAM NOTES
Input Tax Credit (ITC) in GST
Taxation & Accounting - Detailed Concept & Study Guide
1. Input Tax Credit (ITC) Kya Hai?
Input Tax Credit (ITC) GST (Goods and Services Tax) ka ek sabse mahatvapurna feature hai, jo
Cascading Effect (Tax ke upar Tax) ko khatam karta hai.
Aasan Shabdon Mein: Jab koi trader ya business person apne business ke liye goods ya services
khareedta hai aur uspar GST pay karta hai (jise Input Tax kehte hain), toh woh us tax ko apne final
sales par collect kiye gaye GST (jise Output Tax kehte hain) se kam (set-off) kar sakta hai.
2. Practical Example Se Samjhein
Maan lijiye aap ek Manufacturer / Shopkeeper hain:
1. Raw Material Khareedne Par (Input):
Aapne ₹1,000 ka raw material khareeda aur us par 18% GST yaani ₹180 GST pay kiya.
(Ye ₹180 aapka Input Tax hai)
2. Finished Goods Bechne Par (Output):
Aapne us saman ko prepare karke customer ko ₹1,500 mein becha aur us par 18% GST yaani ₹270
GST collect kiya.
(Ye ₹270 aapka Output Tax hai)
3. Government Ko Final Payment (Net Tax Payable):
Aapko government ko pura ₹270 dene ki zaroorat nahi hai. Aap apna pehle se chukaya hua ₹180 isme
se minus kar lenge.
Net GST Payable = Output Tax − Input Tax (ITC)
Net GST Payable = ₹270 − ₹180 = ₹90
Aapko sarkar ke paas sirf ₹90 hi jama karwane honge.
3. Key Terms Quick Overview
Term Meaning / Definition
Input Tax Purchases (Inward Supply) par diya gaya GST.
Output Tax Sales (Outward Supply) par customer se collect kiya gaya GST.
ITC Mechanism Output Tax liability ko Input Tax Credit se kam karne ki prakriya.
Cascading Effect Tax ke upar tax lagna (ITC isse rokta hai).
4. Mandatory Conditions for Claiming ITC (Section 16)
Exam point of view se ITC claim karne ki nimnlikhit shartein yaad rakhna zaroori hai:
1. Registered Person: ITC sirf wahi claim kar sakta hai jo GST under registered ho.
2. Tax Invoice: Buyer ke paas valid Tax Invoice, Debit Note ya prescribed document hona chahiye.
3. Receipt of Goods/Services: Goods ya services actual mein receive ho chuki ho.
4. Tax Paid to Government: Supplier ne wo tax government ke paas deposit kar diya ho (jo GSTR-2B mein
reflect hota hai).
5. Return Filing: Taxpayer ne apna regular GSTR-3B return file kar diya ho.
5. Blocked Credits (Section 17(5))
Kuch specific items par ITC **NAHI** milta (Exclusions for Exam):
• Personal use ke liye khareeda gaya koi bhi saman ya service.
• Motor vehicles (jab tak ki wo further supply, training ya transport business ke liye na ho).
• Food, beverages, outdoor catering, beauty treatment, and health services.
• Club memberships and health/fitness center fees.
• Goods lost, stolen, destroyed, written off, or given as free gifts/samples.
Input Tax Credit (ITC) Notes • Syllabus: Accounts Assistant & Competitive Exams