What is an input tax credit?

The input tax credit is the first input which means that when we bring any raw material in our business, then it is called our input of business. The input of three types of any business is 1 Raw Material 2 Service 3 Capital Goods, these are what we call our input of business but should be procured for the growth of our business. Input tax means when we take supply from someone and whatever tax paid to it is called our input tax. When we sold goods to the customer, we receive even more GST. Earlier, when we had done raw material purchases, at that time we had paid GST., then for this, the government said that the first tax you have paid in it will have to be paid next minus GST by minus tax. This means that if we have paid 5000 before then when we pay GST again, 5000 will have to be given minus tax, this is what we call credit.

Some rules have to be followed in this, otherwise, we cannot claim the ITC. Just like if we charge depreciation on our capital goods, then we will not be able to claim ITC in it and if we charge depreciation on cost price then without including tax, then it is within ITC Will stay.
*Who will get the input tax credit and who will not get it
1 If there is a taxable supply, then we can claim it.
2 If there is a loan taxable supply, we cannot claim it.
3 If it is zero-rated, then we can claim it. (If a relative gives us a machine for business at zero rates and we put it in our business growth, then we can also align it. Can do)

*Who is Eligible to claim ITC

condition as follows:-
1 Whatever the person will be, it should be a registered person who should have GST No and whoever should have capital goods. It should be for the growth of the business. Only then can he claim the ITC.
2 If we take a supply, we can claim ITC on it only after its last installment.
3 When we take a supply from someone, we can claim his ITC within 180 days of his invoice date. After this, it will not be valid.
4 If we charge depreciation, we cannot claim the ITC.
5 We can file the date of filing of ITC after September and before 20 October.

Not Eligible person :

1 person who can not claim an income tax credit (ITC)
2 who’s person does not have any GST number.
3 If not registered under GST.
4 registered in composition scheme this person does not claim ITC file.