Understanding The Eligible and Ineligible Input Tax Credits: Rules, Rates &

Taxation can often feel like a maze, and for businesses, understanding eligible and ineligible input tax credits under GST is crucial for cost savings and compliance. Picture this: A textile manufacturer purchases raw materials and pays GST on them. Later, when selling the finished product, they also charge GST. Without input tax credits (ITC), the manufacturer would be paying tax twice—once on the purchase and again on the sale—leading to unnecessary financial strain.