Input Tax Credit under GST means credit of input tax paid on purchases. Taxpayer can use ITC of Input GST for payment of Output GST charged on sales. Input Tax Credit comprises of credit in form of IGST, CGST, SGST / UTGST or Cess paid on purchase of input goods, capital goods and input services used for business purpose.
- If Input GST > Output GST, excess balance is reflected in E-Credit Ledger
- If Input GST < Output GST, use balance from E-Credit ledger and pay remaining amount depositing cash in E-Cash Ledger
Read more - What is Input Tax Credit (ITC) under GST?