In simple terms, a registered taxpayer can claim the GST paid on purchases of goods or services used in the course of business as a credit against the GST charged on the supply of their own goods or services. This helps to avoid double taxation and reduces the overall tax burden on businesses.

To claim input tax credit, a taxpayer must fulfill the following conditions: The taxpayer must be a registered person under GST. The taxpayer must have a valid tax invoice or debit note issued by the supplier. The goods or services on which ITC is claimed must have been used for business purposes. The taxpayer must have received the goods or services. It is important for businesses to maintain proper records of their purchases and sales to claim input tax credit accurately. The GST portal provides a facility to view and claim input tax credit on eligible purchases made during a specific tax period.

It is important to note that there are certain restrictions on claiming input tax credit, such as on goods or services used for personal purposes or those that are specifically excluded under the GST law. Businesses are advised to consult a tax professional for guidance on claiming input tax credit under the GST system.