Logistics terms · Logistics terms
What does ITC (input tax credit) mean in logistics?
Short answer
The GST mechanism that lets a registered business set off GST paid on purchases used in its business against GST payable on its sales.
Section 16 of the CGST Act sets the conditions, including holding a valid invoice, receiving the goods or services, and the supplier having reported the invoice. GST paid by a recipient under reverse charge on GTA services is generally available as ITC to that recipient if used for business. Ask our desk how this applies to your consignment.
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The numbers behind this answer
- Also called
- ITC, input credit
- Category
- Documents & tax
- Related terms
- GST (Goods and Services Tax), RCM (reverse charge mechanism), GTA (goods transport agency), E-invoice
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