Input Tax Credit (ITC) Under GST: Eligibility, Conditions & Common Mistakes Complete Guide (2026)
Understanding Input Tax Credit (ITC) Under GST The Goods and Services Tax (GST) was introduced to simplify India’s indirect tax system by replacing multiple taxes with a unified taxation framework. One of the biggest advantages of GST for businesses is the availability of Input Tax Credit (ITC) under GST, a mechanism that helps reduce the overall tax burden and prevents the cascading effect of taxes. Whether you’re a manufacturer purchasing raw materials, a retailer buying inventory, a service provider paying GST on professional services, or an e-commerce business investing in technology and logistics, Input Tax Credit plays a vital role …
Reverse Charge Mechanism (RCM) Under GST: Complete Guide for Businesses (2026)
GST has significantly simplified India’s indirect tax system by creating a unified taxation framework for goods and services. Under normal GST transactions, the supplier collects GST from the customer and deposits it with the government. However, the GST law also contains a special provision known as the Reverse Charge Mechanism (RCM), where this responsibility shifts from the supplier to the recipient. Understanding the Reverse Charge Mechanism under GST is essential for businesses because non-compliance can lead to interest, penalties, denial of Input Tax Credit (ITC), and unnecessary disputes with tax authorities. Many businesses unknowingly become liable under RCM under GST …
