Input Tax Credit (ITC) is a key feature of India’s Goods and Services Tax (GST) system. It enables registered taxpayers to reduce their tax liability by claiming credit for the GST paid on purchases or expenses incurred in the course of business. To claim ITC lawfully and accurately, specific conditions must be met and proper documentation must be maintained. A registered person, including an Input…
What is Electronic Cash Ledger? Before the introduction of GST, taxes or duties were paid manually through bank challans. Once the payment was made, the bank would allocate the funds to the respective tax heads. However, with the implementation of GST, the entire process has been automated. The traditional system of manual tax payment has been replaced by the GST portal, which handles all transactions…
