Question

What is input tax credit?

Answer 1

Answer:

A tax credit is an amount of money that taxpayers can subtract from taxes owed to their government. The value of a tax credit depends on the nature of the credit; certain types of tax credits are granted to individuals or businesses in specific locations, classifications or industries.

Step-by-step explanation:

Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount. ... Tax payable on output (FINAL PRODUCT) is Rs 450 b. Tax paid on input (PURCHASES) is Rs 300 c. You can claim INPUT CREDIT of Rs 300 and you only need to deposit Rs 150 in taxes.

Answer 2

GST is levied and collected at every stage of trading from manufacture to consumer when trader pays GST at the time of purchase it is called input tax and he collectes GST at the time of cell which is called output output Tax at the time of paying GST to the government a trader delicates the input tag from the output tax and paste the remaining tax deduction of input tax is called input tax credit

GST payable = output tax - ITC

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