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UNIT-4 INPUT TAX CREDIT UNDER GST - Coggle Diagram
UNIT-4
INPUT TAX CREDIT UNDER GST
MEANING
• Input Tax Credit (ITC) is a mechanism under the Goods and Services Tax (GST) system that allows businesses to reduce the tax paid on inputs (purchases) from the tax payable on their output (sales)
FEATURES
a) Eligibility to Claim ITC
b) Types of Goods and Services on which ITC Can Be Claimed
c) Blocked Credits – When ITC Cannot Be Claimed
d) Restrictions on ITC Availability
METHODS
Regular Method of Claiming ITC
Provisional Method of Claiming ITC
Matching and Reconciliation Method
Refund Method of ITC (Unutilized ITC
ITC for Exporters and Zero-Rated Supplies
MECHANISM
Eligibility for ITC
Mechanism of ITC under GST
Input Tax Credit on Different Types of Purchases
Conditions for Reversal of ITC
Blocked Credits
FRAME WORK
Supplier Issues GST Invoice
Buyer Receives Goods/Services
GSTR-2A Auto-Population
Reconciliation of Purchase Details
Claiming ITC in GSTR-3B