GST Input Credit Calculator
Calculate available input tax credit and net GST liability for businesses
Input Tax Credit (ITC) is a mechanism under GST that allows businesses to claim credit for taxes paid on purchases against the GST liability on sales. Key points:
- Businesses can claim ITC on purchases used for business purposes
- ITC cannot be claimed on certain blocked items (Section 17(5))
- Proper documentation (tax invoices) is required for claiming ITC
- Businesses with exempt supplies face restrictions on ITC
GST Input Credit Calculation Results
Net GST Liability
Payable after adjusting input tax credit
| Total Output Tax | ₹ 0 |
|---|---|
| Total Input Tax Credit | ₹ 0 |
| Eligible ITC | ₹ 0 |
| Reverse Charge Liability | ₹ 0 |
| ITC Carried Forward | ₹ 0 |
| Net GST Liability | ₹ 0 |
GST Breakdown
Detailed GST Analysis
| Category | CGST (₹) | SGST/UTGST (₹) | IGST (₹) | Cess (₹) | Total (₹) |
|---|---|---|---|---|---|
| Output Tax (Collection on Sales) | 0 | 0 | 0 | 0 | 0 |
| Input Tax (Paid on Purchases) | 0 | 0 | 0 | 0 | 0 |
| Ineligible ITC | 0 | 0 | 0 | 0 | 0 |
| Eligible ITC | 0 | 0 | 0 | 0 | 0 |
| Net Tax Liability | 0 | 0 | 0 | 0 | 0 |
ITC Utilization Rules
ITC Utilization Order:
- IGST credit should first be utilized against IGST liability, then CGST, then SGST/UTGST
- CGST credit should be utilized against CGST liability, then IGST
- SGST/UTGST credit should be utilized against SGST/UTGST liability, then IGST
- CGST credit cannot be utilized against SGST/UTGST liability and vice versa
Recommendations
- Maintain proper documentation of all invoices to support your ITC claims.
- Reconcile your purchase and sales data with GSTR-2A/2B to avoid discrepancies.
- File your GST returns accurately and on time to avoid interest and penalties.
GST Input Credit Guide & Tutorial
Understanding Input Tax Credit (ITC)
Input Tax Credit is a mechanism that allows businesses to claim credit for GST paid on purchases against their GST liability on sales. This system helps avoid cascading of taxes (tax-on-tax) and reduces the final cost to consumers.
Eligibility Criteria
- Must have tax invoice/debit note
- Goods/services received
- GST returns filed
- Vendor has paid tax to government
Blocked Credits
- Personal use items
- Motor vehicles (with exceptions)
- Food and beverages
- Membership and club fees
ITC Rules and Regulations
| Aspect | Rule | Details |
|---|---|---|
| Time Limit | Due date of September return or annual return | Whichever is earlier for previous financial year |
| Partial Credit | Proportionate ITC for mixed supplies | Based on ratio of taxable to exempt supplies |
| Reversal | Required in specific cases | Non-payment, loss/damage, non-business use |
| Documentation | Proper records required | Invoices, credit notes, payment proof |
ITC Utilization Order
IGST Credit
Order of utilization:
- First against IGST liability
- Then against CGST liability
- Finally against SGST/UTGST liability
CGST Credit
Order of utilization:
- First against CGST liability
- Then against IGST liability
- Cannot be used for SGST/UTGST
SGST/UTGST Credit
Order of utilization:
- First against SGST/UTGST liability
- Then against IGST liability
- Cannot be used for CGST
How to Use the ITC Calculator
Enter Business Profile
Select your business type, return filing period, and GST return type. For mixed supplies, specify the ratio of exempt supplies.
Input Output Tax Details
Enter GST collected on sales (CGST, SGST/UTGST, IGST, and Cess) for the period.
Enter Input Tax Details
Provide GST paid on purchases, including any blocked credits or reverse charge amounts.
Add Previous Credits
Include any ITC carried forward from previous period and advance tax/TDS/TCS paid.
Review Results
Check the detailed breakdown of eligible ITC, net tax liability, and ITC to be carried forward.
Frequently Asked Questions
If vendor doesn't comply:
- ITC will be added back to your output liability
- Interest will be applicable from date of availing credit
- You can claim ITC once vendor complies
- Consider vendor compliance history for future purchases
Regular GSTR-2B reconciliation helps identify such issues early.
For capital goods:
- Full ITC available in single installment
- Must be used for business purpose
- Reversal required if:
- Sold within specified period
- Used for non-business purpose
- Used for exempt supplies
Maintain separate records for capital goods ITC.
Time limits for ITC claims:
- Regular Cases:
- Earlier of following dates:
- Due date of September return of next FY
- Date of filing annual return
- Special Cases:
- Debit notes: Date of debit note
- Invoice amendment: Date of amendment
Regular reconciliation helps avoid missing ITC claims.
For businesses with both taxable and exempt supplies:
- Calculate Total ITC:
- ITC on exclusively taxable supplies
- ITC on exclusively exempt supplies
- Common ITC for both supplies
- Apply Formula:
- Eligible ITC = T + (C1 × C2)
- T = ITC for taxable supplies
- C1 = Common credit
- C2 = Ratio of taxable turnover to total turnover
Annual reconciliation required for final adjustment.
Required documents for ITC:
- Primary Documents:
- Tax invoice
- Debit note
- Bill of entry
- Supporting Documents:
- Proof of receipt of goods/services
- Payment proof to vendor
- GSTR-2B showing vendor compliance
Maintain documents for minimum 72 months.