Input Tax Credit with ITC Ledger of Tax Payer?

Difference between ITC Ledger of Tax Payer and Input Tax Credit under GST terms

 

What is Input Tax Credit? How does ITC Ledger of Tax Payer work under GST regime? What are the difference between Input Tax Credit and ITC Ledger of Tax Payer?

 

Under GST system, the following information explains about Input Tax Credit and ITC Ledger of Tax Payer.

 

Input Tax Credit as self-assessed in monthly returns will be reflected in ITC ledger. The credit of this ledger can be used for payment of TAX ONLY and not for payment of interest, fines, fees etc.

 

ITC is 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’. Under the previous system of indirect taxation, credit of taxes being levied by Central Government was not available as set-off for payment of taxes levied by State Governments, and vice versa.

 

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

 

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

 

Meaning of Input Tax Credit Mechanism in GST

Meaning of ITC Ledger of Tax Payer under GST

 

The above information easily explains about ITC Ledger of Tax Payer and Input Tax Credit.

 

We  hope, you have satisfied with the difference between Input Tax Credit and ITC Ledger of Tax Payer explained above. Do you have different thought on difference between ITC Ledger of Tax Payer and Input Tax Credit?

 

Share below your thoughts about Input Tax Credit and ITC Ledger of Tax Payer

 

 

 

 

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