As You Know One Of The Biggest Tax Reform Which Took Place In Year 2017 In India Was Of Goods And Service Tax Which Is A Type Of Indirect Tax Levied On All The Goods And Services Which Come Under Gst Act .The Main Reason Of Goods And Service Tax Is Removing The Cascading Effect Of Multiple Taxes And Reducing The High Tax Burden Of Consumers. One Main Tool or Element Is Added in The Gst Act Which Has One Work That Is Offset the Tax Liability in Supply of Goods or Services Transactions. This Tool or Element Is Known as Input Tax Credit.
Itc Is The Short Form Of Input Tax Credit It Is The Type Of Tax Which Is Paid By The Taxpayer On Their Purchases And It Can Help Them To Reduce Their Liability Of Tax While When They Make Their Sale By Claiming Input Tax Credit Of That Tax Which They Already Pay At The Time Of Purchase. There Is A Specified Time Period in The Provision of Gst Act to Claim the Input Tax Credit by The Tax Payer In A Specific Manner or Procedure. It Boost Your Profitability or Match Your Sale and Purchase Invoice and Reduce Your Payable Gst Each Month.