ITC Calculator
Understanding Your Results
Individual ITC
The tax amount you can claim for each specific purchase. This reduces your GST liability. Make sure you have valid tax invoices for all purchases to claim ITC.
Total Purchase Amount
The sum of all your purchases including GST. This is your total expenditure. Use this to track your business spending and cash flow.
Total ITC Claimable
The total tax credit you can claim against your GST liability. This reduces the amount you need to pay to the government. Report this in your GST return.
What is Input Tax Credit (ITC)?
Understanding ITC and how it reduces your GST liability.
Real-World Examples
See how businesses calculate ITC in different scenarios.
Manufacturing Company - Monthly Purchases
A manufacturer calculating monthly ITC
Calculation Steps
- Raw Materials: ₹50,000 (12% GST) → ITC: ₹5,357
- Machinery: ₹200,000 (18% GST) → ITC: ₹30,508
- Office Supplies: ₹10,000 (18% GST) → ITC: ₹1,525
- Total ITC: ₹37,390
Retail Business - Inventory Purchase
A retailer purchasing inventory with different rates
Calculation Steps
- Product A: ₹30,000 (5% GST) → ITC: ₹1,429
- Product B: ₹80,000 (12% GST) → ITC: ₹8,571
- Product C: ₹100,000 (18% GST) → ITC: ₹15,254
- Total ITC: ₹25,254
Service Provider - Operating Expenses
A service company calculating ITC on expenses
Calculation Steps
- Software: ₹25,000 (18% GST) → ITC: ₹3,814
- Equipment: ₹15,000 (28% GST) → ITC: ₹3,281
- Supplies: ₹5,000 (12% GST) → ITC: ₹536
- Total ITC: ₹7,631
How to Use
Four simple steps to calculate your total ITC.
Select Price Type
Choose whether your amounts include or exclude GST. Most invoices show amounts including GST.
Add Purchase Items
Enter description, amount, and GST rate for each purchase. Click the rate buttons for quick selection.
Review ITC
See the claimable ITC for each item automatically calculated. The calculator updates in real-time as you type.
View Total
Check your total purchase amount and total claimable ITC. Use this for your GST return filing.
Why Use This Calculator?
Key benefits of using our ITC calculator for GST compliance.
Accurate ITC Calculation
Calculate claimable ITC with precision for each purchase item and see the total. No manual errors, perfect for GST return filing.
Multiple Tax Rates
Support for all Indian GST rates: 5%, 12%, 18%, and 28%. Handle purchases with different tax rates in one calculation.
Multiple Items
Add unlimited purchase items and calculate total ITC in one place. Perfect for monthly purchase reconciliation.
Tax Optimization
Maximize your ITC claims by accurately tracking all eligible purchases. Reduce your GST liability legally and efficiently.
Parameters Explained
Understanding each input field and how it affects your calculation.
Price Type
Whether purchase amounts include GST (default) or exclude GST. If your invoice shows the total amount with tax, select 'Including GST'. If it shows the base amount before tax, select 'Excluding GST'.
Purchase Items
List of all purchases with description, amount, and GST rate. Add as many items as needed. Each item can have a different GST rate. The description is optional but helps you track what each purchase is for.
GST Rate
The tax rate applied to each purchase (5%, 12%, 18%, or 28%). These are the standard GST rates in India. Select the rate that matches your invoice. Use the quick rate buttons for faster input.
Calculation Formulas
Mathematical formulas used to calculate ITC
ITC from Including GST Price
When your invoice shows the total amount including GST, use this formula. Divide the total by (1 + rate) to find the base, then subtract to get the ITC.
ITC = Purchase Amount - (Purchase Amount ÷ (1 + GST Rate ÷ 100))
Example: Amount: ₹11,800, Rate: 18% → ITC = 11,800 - (11,800 ÷ 1.18) = ₹1,800
ITC from Excluding GST Price
When your invoice shows the base amount before GST, use this formula. Simply multiply the base by the rate to get the ITC.
ITC = Base Amount × (GST Rate ÷ 100)
Example: Base: ₹10,000, Rate: 18% → ITC = 10,000 × 0.18 = ₹1,800
Total ITC
Add up the ITC from all your purchase items to get the total claimable amount. This is what you report in your GST return.
Total ITC = Sum of all individual ITCs
Example: Item 1: ₹1,800 + Item 2: ₹600 + Item 3: ₹6,125 = ₹8,525
Common Questions
Answers to frequently asked questions about ITC.
You can claim ITC on goods and services purchased for business use. Common eligible items include raw materials, capital goods, office supplies, and business services. Personal expenses and blocked credits (like motor vehicles for personal use) are not eligible. Always check the GST Act for the complete list of blocked credits.
Yes, you can claim ITC regardless of the GST rate (5%, 12%, 18%, or 28%). The calculator supports all standard GST rates in India. The rate doesn't affect your eligibility to claim ITC, only the amount you can claim.
Most invoices show the total amount including GST. Select 'Including GST' if your invoice shows the total. Select 'Excluding GST' if you have the base amount before tax. Check your invoice carefully to determine which option to use.
ITC reduces the GST you need to pay. For example, if you collected ₹10,000 GST from customers (output tax) and have ₹3,000 ITC from purchases (input tax), you only pay ₹7,000 to the government. This is the core mechanism of GST - you pay tax only on the value you add.
Generally yes, but you must have a valid tax invoice and the supplier must have filed their GST return. Check current GST rules for specific conditions. Some purchases may have time limits for claiming ITC, so file your returns promptly.
Disclaimer
This calculator provides estimates for informational purposes only. ITC eligibility rules may vary based on specific circumstances. Always verify ITC claims with current GST regulations and consult a qualified tax professional for advice specific to your situation. We are not responsible for any decisions made based on this tool.