ITC stands for Input Tax Credit under GST. It refers to the Goods and Services Tax (GST) paid by a taxable person on any purchase of goods and/or services that are used or will be used for business. The ITC value can be reduced from the GST payable on the sales by the taxable person only after fulfilling some conditions. These conditions are given under the GST law and are more or less in line with the pre-GST regime, except for a few additional ones such as GSTR-2B. Some of the key conditions for availing ITC include:

• The buyer must be in possession of a tax invoice or debit note issued by a supplier registered under GST.
• The buyer must have received the goods and/or services.
• The tax charged in respect of such supply has been actually paid to the account of the appropriate Government.
• The buyer has furnished the return under section 39.

ITC can only be claimed for tax invoices and debit notes which are less than a year old. In any other case, the last date to claim ITC is the earlier of the due date of return for the month of September of the next financial year or the annual return filed for the relevant year.