INPUT TAX CREDIT (ITC) AND GSTR-2A: EVERYTHING YOU NEED TO KNOW

Input Tax Credit (ITC) is a mechanism that allows businesses to claim tax credits for the taxes they have already paid on inputs used in the production of goods or services.

ITC is available under the Goods and Services Tax (GST) regime, which was introduced in India in 2017.

To claim ITC, businesses must have valid tax invoices or other prescribed documents, and the supplier must have filed their GST returns.

GSTR-2A is a document that shows the details of all the invoices uploaded by a supplier on the GST portal.

Businesses can use GSTR-2A to verify the details of the invoices uploaded by their suppliers, and claim ITC accordingly.

It is important for businesses to reconcile their purchase records with the details available in GSTR-2A, to ensure that they are claiming the correct amount of ITC.

By claiming ITC, businesses can reduce their tax liability and improve their cash flow, which can help them grow and expand their operations.