GST Input Tax Credit (ITC) & Net Tax Payable Calculator 2026
Calculate Output GST liability, eligible Input Tax Credit (ITC) on purchases, and net cash GST payout to tax authorities
1. Sales Output (Outward Supplies)
2. Purchases & Input Tax Credit (ITC)
Net GST Cash Payable
₹72,000
Tax Component Split
Input Tax Credit Optimization: GSTR-2B Reconciliation and Blocked Credits
Input Tax Credit (ITC) prevents the cascading effect of double taxation by allowing businesses to offset the GST paid on purchases and inputs against the GST liability collected on final sales. Under Section 16(2)(aa), ITC can only be claimed if the supplier has filed their GSTR-1 and the invoice reflects in the buyer's GSTR-2B statement.
GSTR-2B Mandatory Matching
Rule 36(4) strictly limits ITC claims to invoices that appear in your auto-generated GSTR-2B. Self-declared or unreflected provisional credits are completely barred.
Section 17(5) Blocked Credits
ITC cannot be claimed on: motor vehicles (unless used for commercial passenger transport/driving schools), food and beverages, outdoor catering, employee health insurance (unless legally mandated), and construction of immovable property.
How your credit is set off, step by step
Credit and liability each sit in three separate ledgers. Section 49A says IGST credit must be used up first, and the provisos to section 49(5) bar CGST credit from paying SGST and the other way round. That is why credit can be left over while cash is still payable, and why the leftover is shown per ledger rather than as one number.
GST Input Tax Credit (ITC) FAQs
Practical guidance on GSTR-2B reconciliation and audit safety.
What is the 180-day vendor payment rule under GST for claiming ITC?
Under the second proviso to Section 16(2), if a buyer fails to pay the supplier the invoice value plus GST within 180 days from the invoice date, the ITC already claimed must be reversed in GSTR-3B along with interest at 18% per annum.
What is the time limit for claiming missed ITC for a financial year?
Under Section 16(4), missed ITC for any financial year can be claimed up to November 30th following the end of that financial year, or the date of filing the relevant annual return (GSTR-9), whichever is earlier.
Can ITC be claimed on laptops and office equipment purchased for business?
Yes. Laptops, computer monitors, servers, and office furniture purchased strictly for commercial use are capital goods/inputs eligible for 100% ITC claims.
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