SSC (English Medium) Class 10th Board ExamMaharashtra State Board

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GST - Computation and ITC

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What is Input Tax Credit ? (ITC)
GST is levied and collected at every stage of trading from manufacturer to consumer. When trader pays GST at the time of purchase, it is called 'Input tax' and he collects GST at the time of sale which is called 'Output tax'.At the time of paying GST to the government a trader deducts the input tax from the output tax and pays the remaining tax. This deduction of input tax is called Input Tax Credit.
GST payable = Output tax - ITC
  In short, while paying taxes to the government each trader in the trading chain subtracts the tax paid at the time of purchase from the tax collected at the time of sale and pays the remaining tax.

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