Utilization of ITC (Input Tax Credit): the core provision of GST

GST is destination-based tax and Input Tax Credit is the core provision of GST. Input Tax Credit lays the base of GST, which helps to avoid the cascading effect of taxes in GST. ITC is considered to be the backbone of the GST regime. In fact, it is the provision of ITC which essentially make GST a value added tax i.e., collection of tax at all points of supply chain after allowing credit of tax paid at earlier points. The GST regime promises seamless credit on goods and services across the entire supply chain, and this is only possible through the core provision of Input Tax Credit. This paper intends to elucidate the core concept of GST i.e., Input Tax Credit which has enabled the entire nation suppliers and recipients of taxable supplies to take the benefit of tax paid while purchasing inputs.