Input Tax Credit and Direct Tax Turnover Approach under GST terms

How to differentiate Direct Tax Turnover Approach with Input Tax Credit?

 

What is Direct Tax Turnover Approach? How does Input Tax Credit work under GST regime? What are the difference between Direct Tax Turnover Approach and Input Tax Credit?

 

Under GST system, the following information explains about Direct Tax Turnover Approach and Input Tax Credit.

 

As per GST terms,   Direct Tax Turnover Approach means a third approach—which was described in the Thirteenth Finance Commission--is based on using income tax data which are available for about 94.3 lakh registered entities (including companies, partnerships, and proprietorships but not charitable organizations).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 Direct Tax Turnover Approach and Input Tax Credit with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Direct Tax Turnover Approach 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 Direct Tax Turnover Approach and Input Tax Credit separately below.  You may kindly read the below links to know more about Input Tax Credit and Direct Tax Turnover Approach.  

 

What is Direct Tax Turnover Approach under GST

Meaning of term Input Tax Credit under GST

 

 

The above information easily explains about Input Tax Credit and Direct Tax Turnover Approach.

 

I hope, you have satisfied with the difference between Direct Tax Turnover Approach and Input Tax Credit explained above. Do you have different thought on difference between Input Tax Credit and Direct Tax Turnover Approach?

 

Share below your thoughts about Direct Tax Turnover Approach and Input Tax Credit

 

 

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