Input Tax Credit is the money you can get back on the taxes you paid while purchasing a product or service.
You can file them as returns on the GST Network (GSTN) to get back the money you paid while making a purchase from a wholesaler, retailer or online platform.
How Do I Get My Input Tax Credit?
To claim your input tax credit, both you and your supplier needs to be covered under the GST Act.
The following conditions must be fulfilled for you to be able to claim your input tax credits:
- You should have received the goods/services
- You should have a legit invoice of the purchased goods or services
- The tax charged to you was paid to the government by your supplier
- The supplier has filed for returns.
You can claim your input tax credits online via the GST network using GSTR 1 and GSTR 2.