Input Tax Credit (ITC) Calculator
Calculate your GST Input Tax Credit (ITC) easily. Our tool helps you determine the deductible input tax and estimate your final GST liability.
Input Tax Credit (ITC) Calculator
Understanding the Input Tax Credit (ITC) Calculator
A simplified tool to help you understand and estimate your Goods and Services Tax (GST) liability after claiming Input Tax Credit.
Why Use Our ITC Calculator?
A simple yet powerful tool for understanding your GST liability.
Clear & Simple
We focus on the core concept of ITC, making it easy for anyone to understand how output and input tax interact without complex jargon.
Instant Estimation
Get a quick estimate of your net GST payable or credit to be carried forward, helping you with financial planning for the tax period.
Educational Tool
Perfect for students, small business owners, and GST newcomers to learn the fundamental mechanics of Input Tax Credit before diving into complex legal rules.
No Cost, No Hassle
Like all our tools, the ITC calculator is completely free, requires no registration, and respects your privacy.
How to Use the ITC Calculator
Follow these two simple steps to calculate your net GST liability.
Enter Your Output Tax
In the first field, enter the total GST you have collected from your customers on your sales during the tax period.
Enter Your Input Tax
In the second field, enter the total GST you have paid on your business purchases and expenses during the same period.
Calculate Net Liability
Click the "Calculate Net GST Payable" button to see the final result, which will show either the amount you need to pay or the credit you can carry forward.
The Core Formula of ITC Calculation
The calculation is based on a simple subtraction principle.
Net GST Payable
This formula determines your final tax liability by subtracting the GST you have already paid (Input) from the GST you have collected (Output).
Net GST Payable = Output Tax - Input Tax Example: If your Output Tax is $10,000 and your Input Tax is $8,000, your Net GST Payable is $2,000.
Excess ITC Carried Forward
If your Input Tax is greater than your Output Tax, the difference is your excess credit, which can be carried forward to the next tax period.
Excess ITC = Input Tax - Output Tax Example: If your Input Tax is $12,000 and your Output Tax is $10,000, you have an Excess ITC of $2,000 to carry forward.
Frequently Asked Questions about ITC
Common questions about the Input Tax Credit mechanism.
Input Tax Credit (ITC) means that at the time of paying tax on your output (sales), you can reduce the tax you have already paid on your inputs (purchases). It is a core feature of GST that avoids double taxation.
The basic formula is: Net GST Payable = Total Output Tax - Total Input Tax. If the result is negative, it becomes an excess credit that can be carried forward.
Any person registered under GST who makes taxable supplies of goods or services is generally eligible to claim ITC on the tax paid for their business-related purchases.
Eligible ITC is the tax paid on goods and services used for business purposes. Ineligible ITC relates to purchases for personal use, certain exempt supplies, or items specifically disallowed by law (e.g., employee meals, club memberships). Our calculator assumes all your input tax is eligible for simplicity.
Yes, most countries have specific rules. For example, in India, there is a strict hierarchy for setting off IGST, CGST, and SGST credits. This calculator provides a simplified estimate and does not apply these complex rules. Always consult a tax professional for accurate filing.
Disclaimer
This Input Tax Credit (ITC) calculator is a simplified tool for educational and estimation purposes only. It does not account for complex, country-specific tax set-off rules. The results should not be considered as financial or legal advice. For accurate tax filing, please consult with a qualified tax professional and refer to your local tax authority’s guidelines.