Skip to content

ERP glossary · Accounts

What is Input tax credit (ITC)?

Definition

Input tax credit lets a business reduce the GST it owes by the GST it has already paid on purchases used for its business.

To claim it, the purchase must be supported by a valid tax invoice and must appear in the supplier's filed returns.

Related terms

All glossary terms

Start running your business on IndustryX today

Free forever* for 2 users. Upgrade when you grow, and your data comes with you.