Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningGST paid on business purchases that can be set off against GST payable on sales.
Relevant ActCGST Act, 2017
Section / ruleSection 2(63), Sections 16-18
Technical meaning
Credit of input tax charged on supplies used or intended to be used in the course or furtherance of business, subject to conditions in sections 16 to 18.
Practical example
GST of Rs 18,000 on a machine is set off against output tax.
Related terms
- GSTR-2B
- Blocked Credit
Official reference
CGST Act, 2017, Section 2(63), Sections 16-18
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