GST Input Tax Credit (ITC): Rules, Reversals & Common Mistakes
S
Statura Team
Input Tax Credit (ITC) lets you offset the GST you paid on purchases against the GST you collect on sales — but the rules are strict, and errors are costly.
Conditions to claim ITC
- You hold a valid tax invoice
- You received the goods/services
- The supplier actually paid the tax and filed returns
- The credit appears in your GSTR-2B
Blocked credits (Section 17(5))
ITC is not allowed on certain items — personal-use motor vehicles, food & beverages, club memberships, and goods used for personal consumption.
Reversals
If you don't pay a supplier within 180 days, or use inputs for exempt supplies, ITC must be reversed with interest.
The big trap: reconciliation
ITC is now largely locked to GSTR-2B. If a supplier doesn't upload the invoice, you lose the credit — so vendor compliance matters.
Statura reconciles your ITC monthly and recovers missed credits.
#input tax credit
#ITC
#GST reconciliation
#GSTR-2B