Input Tax Credit and Accumulated credit

How to differentiate Accumulated credit with Input Tax Credit?

 

What is Accumulated credit? How does Input Tax Credit work under GST regime? What are the difference between Accumulated credit and Input Tax Credit?

 

Under GST system, the following information explains about Accumulated credit and Input Tax Credit.

 

As per GST terms, Accumulated credit means credit availed on inputs, input services and capital goods to extent attributed to dutiable goods or taxable services/exported goods+ exported services, availed in excise/service tax returns and not utilized but C/F as closing balance in return filed in pre-GST.  Input Tax Credit means a mechanism to ensure that the supplier needs to pay GST in cash only on the value addition. ITC mechanism thereby avoids cascading of taxes that is ‘tax on tax’.

 

The details about Accumulated credit and Input Tax Credit with simple language from GST terms have been mentioned in this web blog separately. We suggest you to read these articles on Accumulated credit and Input Tax Credit, so as to enable you to have a clear idea on these GST terms.

 

For your immediate reference, we give below web links on Accumulated credit and Input Tax Credit separately below. You may kindly read the below links to know more about Input Tax Credit and Accumulated credit.  

 

Accumulated credit to GST means

Meaning of term Input Tax Credit under GST

 

 

The above information easily explains about Input Tax Credit and Accumulated credit.

 

We hope, you have satisfied with the difference between Accumulated credit and Input Tax Credit explained above. Do you have different thought on difference between Input Tax Credit and Accumulated credit?

 

Share below your thoughts about Accumulated credit and Input Tax Credit

 

 

 

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