ITC (Input Tax Credit) is the tax a registered business has already paid on purchases of goods or services for its business. For example: a manufacturer buys goods worth ₹10,000 + ₹1,800 GST (18%), then sells the finished product for ₹15,000 + ₹2,700 GST (18%).
The manufacturer can claim back that ₹1,800 as ITC when filing GST, and only needs to pay ₹900 (₹2,700 − ₹1,800) to settle the GST liability.
A few things to keep in mind:
- You can only claim ITC on eligible purchases used for your business — for example, you can’t claim ITC on food bought for personal use.
- You need to follow the correct rules and procedures to claim ITC, including filing your GST returns accurately.
In short, ITC is simply claiming back the GST you’ve already paid to the government through your supplier.
So instead of paying the full ₹2,700 GST from the example above, you only need to pay ₹900.
Filing Your GST With YourBooks in a Jiffy
- Go to your YourBooks account.
- Click the GST tab and select GSTR-1.
- Choose your filing period.
- Check your invoices for the applied period.
- Click Save — you’ll get a reference number once it’s saved successfully.
- Cross-verify your invoices on the GST Portal if needed.
- Click File, and your GST is filed with YourBooks.
Why Choose YourBooks for Your ITC Journey?
Managing ITC can feel like navigating a maze, but YourBooks simplifies the process:
- Swift and accurate results: get your ITC reconciled in just 10 days.
- Effortless alignment between your records and the GST portal.
- Maximized credits: eligible ITC is identified systematically, so you don’t leave money on the table.
- Reduced errors and reduced risk of penalties from mistakes.
- A smooth, transparent GST experience from start to finish.
With YourBooks as your partner, ITC becomes a straightforward tool for saving money and streamlining your business operations.
Ready to simplify your ITC claims? Start your GST journey with YourBooks today and put those tax savings back into your business.