GST Input Tax Credit (ITC) Calculator
Calculate your eligible ITC, filter blocked credits under Section 17(5), and plan liability utilization (Rule 88A offset rules).
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1. Gross Purchase GST
2. Blocked Credits Section 17(5)
Certain purchase categories are ineligible for credit under Indian GST law. Input the amount of tax paid on these to exclude them.
3. Outward Tax Liability
Rule 88A Offset Schedule
| Liability Type | Outward Tax | Offset by IGST | Offset by CGST/SGST | Cash Payable |
|---|---|---|---|---|
| IGST Liability | ₹0 | ₹0 | ₹0 | ₹0 |
| CGST Liability | ₹0 | ₹0 | ₹0 | ₹0 |
| SGST Liability | ₹0 | ₹0 | ₹0 | ₹0 |
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How to Use This Tool
Simple steps to calculate and verify
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1
Enter Inward Tax Paid Input total IGST, CGST, and SGST paid on business purchases, office equipment, and services as per your purchase bills.
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2
Filter Blocked Credits Identify ineligibilities under Section 17(5) (e.g. food & beverages, motor vehicles, personal gifts, club memberships).
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3
Enter Outward Tax Payable Enter your gross output tax liability for the tax period.
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4
Compute Optimized Set-Offs View the Rule 88A set-off sequence (IGST credit exhausted first, followed by CGST and SGST) to minimize cash outflow.
Pro Tips & Statutory Advice
Practical business & compliance advice
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Rule 88A Mandatory Set-Off Order IGST credit must be completely utilized to 0 before any CGST or SGST credit can be used to pay off tax liabilities.
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GSTR-2B Matching Prerequisite Under Section 16(2)(aa), ITC is claimable only if the supplier has filed GSTR-1 and the invoice appears in your static GSTR-2B statement.
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The 180-Day Payment Clock Under Section 16(2) proviso, if you fail to pay your vendor within 180 days of invoice date, you must reverse the claimed ITC along with 18% interest.
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Capital Equipment Depreciation If you claim income tax depreciation on the GST component of capital machinery, you are barred from claiming GST Input Tax Credit.
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Composition Calculator
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AI GST Advisor
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What is Input Tax Credit (ITC)?
Input Tax Credit (ITC) means reducing the tax paid on inputs (purchases) from the tax payable on outward supplies (sales). It is a mechanism to avoid the cascading effect of double taxation in India.
To claim ITC, a registered business must meet the conditions defined under Section 16 of the CGST Act, including possession of a tax invoice, receipt of goods/services, and timely filing of GSTR-3B.
Blocked Credits under Section 17(5)
Even if used for business purposes, ITC cannot be claimed on certain supplies. These are designated as "Blocked Credits" under Section 17(5) of the CGST Act. Key categories include:
- Motor Vehicles: Credit is blocked for passenger motor vehicles with a seating capacity of 13 or fewer (unless used for further supply, transport of passengers, or training).
- Food, Beverages, and Catering: Blocked unless used to make outward taxable supplies of the same category or provided as a statutory obligation.
- Personal Consumption: Goods/services used for personal consumption are ineligible.
- Lost, Stolen, or Free Samples: ITC must be reversed for goods lost, stolen, destroyed, written off, or distributed as gifts/free samples.
GST Rule 88A: Order of ITC Utilization
As per Rule 88A of the CGST Rules, taxpayers must follow a strict sequential order when using available tax credits to offset outward tax liabilities:
Step-by-Step Offset Rules:
- IGST Credit Priority: Available IGST input credit must be completely exhausted first before CGST or SGST credit can be utilized.
- IGST Allocation Order: IGST credit must first offset IGST liability. Any remaining IGST credit can offset CGST and SGST liabilities in any order and proportion.
- CGST Allocation Order: CGST credit can offset CGST liability, and any remaining credit can offset IGST liability. CGST credit CANNOT offset SGST liability.
- SGST Allocation Order: SGST credit can offset SGST liability, and any remaining credit can offset IGST liability. SGST credit CANNOT offset CGST liability.