What is ITC ?

Last updated at August 14, 2026 by

We know that 
Tax on Purchase is called Input GST 
Tax on Sales is called Output GST
GST Credit=Input GST-Output GST
 
This Input GST is technically called Input Tax Credit (ITC)
This GST Credit is technically called Closing Input Tax Credit (ITC)

 

What is ITC.jpg

Question

Suppose in April

Purchase of a Company= 20000

Sales of a Company =30000

GST Rate =5%

What is ITC of April

View Answer

 

 

 

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Transcript

WHAT IS INPUT TAX CREDIT Output GST Input GST ( This is Called Input Tax Credit or ITC GST payable GST Credit ( This is called Closing ITC or teachoo.com

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant with 16+ years of practical experience and 20+ years of teaching experience. At Teachoo, he simplifies Accounts, Tax and GST with step-by-step examples so students can apply concepts confidently in exams and real life.

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