October 24, 2025 · 14 mins read
Santosh Kumar
Input tax credit (ITC) is an important part of the Goods and Services Tax (GST) system, in light of which the tax burden on businesses is lessened. It will enable registered taxpayers to claim credit on the tax paid in previous transactions, purchases, or inputs used in business. This will make sure that no tax is imposed on value beyond the one added in every step of the chain of supply. In order to be accurate and compliant, all taxpayers are expected to conduct regular reviews of their ITC records on the GST portal. Hence, it becomes a crucial skill to know how to check input tax credit in the GST portal for every business owner and accountant.
GST portal has a convenient system which assists taxpayers to access, check and balance their ITCs using forms such as GSTR-2A and GSTR-2B. Learning how to check input tax credit in the GST portal, it is easy to see the discrepancies between the supplier filings and their own purchase records. Periodic ITC auditing not only saves financial losses but also saves businesses the trouble of fines or warnings about the mismatch of data. Therefore, ensuring the process to check input tax credit in the GST portal will make the GST compliance, credit utilisation, and filing of returns accurate for all registered taxpayers.
According to Goods and Services Tax (GST), Input Tax Credit (ITC) is a form of credit that businesses claim based on the tax they paid on goods or services which they used in their line of business. GST separates the taxes into three broad groups to be transparent and allow the free flow of the credit, which are: Central GST (CGST), State GST (SGST), and Integrated GST (IGST). The awareness of these kinds of types and the familiarity with checking input tax credit in the GST portal can enable businesses to check whether their tax credit is well reflected and used.
The Central Government imposes CGST on intra-state supplies of goods and services. ICC of CGST allows businesses to pay CGST or IGST, but not SGST. Taxpayers may use the GST portal to ensure that all the credits are recorded appropriately by checking the input tax credit in the GST portal under the CGST section.
The intra-state transactions are subject to SGST by the respective State Government. SGST or IGST, but not CGST, can be paid with the use of the ITC of SGST. The taxpayers will be able to check the credits of SGST by checking GSTR-2B or the Electronic Credit Ledger when they know how to check input tax credit in the GST portal.
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IGST is imposed on inter-state supplies, imports and exports. IGST can be paid in a sequence of ITC of IGST, CGST or SGST. Through the portal, these credits can be used properly by way of proper reconciliation.
The ITC cross-utilisation rule enables taxpayers to balance CGST, SGST, and IGST in accordance with the prescribed order of the government. Being aware of the process of verifying the input tax credit in the GST portal is a way of keeping everything in check, preventing errors, and ensuring the smooth flow of credits between various elements of GST.
In India, businesses can benefit from the input tax credit (ITC) provided by the Goods and Services Tax (GST). Through the use of the Business Tax Credit (BTC), a registered taxpayer can reduce the total amount of taxes owed by claiming a tax credit for the amount of tax paid on a purchase that is used for the purposes of their business.
Only businesses or individuals who hold GST registration can claim ITC. To claim ITC, an individual must have a legitimate GST Identification Number and used purchased items/services for the purpose of business. Additionally, the person making a purchase must have been registered with GST and must have paid the relevant tax to the government on the purchase.
To claim ITC, a taxpayer must have either a valid original purchase invoice or a valid debit note from the seller. The purchased goods or services must have been received (or "actual possession") and the tax charged must be included in the GST return that was filed by the seller. The taxpayer must file their GST returns within the applicable time limits.
Purchasing from unregistered persons or for personal use will disqualify an individual from claiming ITC.
Businesses are able to receive this type of credit for taxes expended on the purchasing of goods and services used in the operation of their business. The items used by the business include, but are not limited to raw materials used to make their product, capital goods used to manufacture or produce goods or deliver services. For example, manufacturers are able to receive a credit for any raw materials purchased to produce their good, and service providers are able to receive a credit for any professional services, office expenses or equipment purchased to assist in their operations. Local retailers are also able to receive credit for the purchase of any item which is to be "sold" as part of their business.
ITC can also be claimed for capital goods such as machinery/equipment used to produce goods or services that are within the scope of the ITC program as taxable supplies. The only requirement is that the good(s) or service(s) must be used for the purpose of manufacturing, producing, or providing taxable goods or services.
However, you are only eligible to claim this credit after you have met the requirements for qualification such as evidence of ownership and payment of the appropriate taxes by the supplier.
The GST law sets forth a clear definition of which expenses can be claimed as ITC, and which can’t. In general, the tax paid on business-related purchases, such as raw materials, input services, and capital goods used to generate income that is subject to GST will be eligible for ITC.
However, there are some items/expenses that are specifically blocked by the GST law. These generally include any type of personal expense, or items or services used in personal consumption, club membership fees, and certain motor vehicles that are not used solely for transportation services or training purposes.
The GST law prohibits claiming ITC for items that are lost, stolen, destroyed, or given away as free samples. In addition, businesses that elect to use the composition scheme under GST are not entitled to claim input tax credits
By understanding what credits can/ cannot be claimed, the business will be less likely to make erroneous claims (which may be subject to penalties) or to create compliance problems.
Automation has proven to be an effective tool for businesses seeking to improve efficiency and accuracy when claiming ITC. Automated systems, coupled with accurate financial records, help businesses achieve these goals.
Accounting programs that integrate accounting and GST systems allow businesses to keep track of invoices, match purchase information with GST records, and identify eligible credits automatically.
Regularly reconciling purchase records to supplier returns will help verify that the tax-related information is accurate when filing. This will help reduce the chances of a claim being denied due to discrepancies in the data.
Other documentation, ensuring that suppliers are compliant, and having the GST return filed on time will help maximize the benefits of the ITC. Classifying costs into categories and periodically reviewing expenditures will help identify eligible credits for the purpose of claiming them.
Automating these processes not only simplifies the process of claiming ITC, but also helps ensure compliance, reduce the risk of making errors, and improve financial forecasting. Taking the time to properly manage an input tax credit will result in a lower tax burden on the business, thereby increasing business productivity and efficiency.
Every taxpayer, therefore, needs to learn how to check input tax credit in the GST portal accurately and in compliance with GST. GST portal provides an orderly and clear procedure for viewing, validating and matching the Input Tax Credit (ITC) information. The following is a step-by-step explanation on how to ensure you check your ITC effectively.
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Visit the official GST site -www.gst.gov.in. It is the sole approved channel of dealing with GST registration, filing returns and ITC details.
Your dashboard is now available to you with a username and a password that is entered with your GSTIN. After authenticating, you will be redirected to your personal taxpayer dashboard displaying the status of returns and notices, among others.
The top menu includes a list of services that can be accessed by clicking: Services, Returns and then Returns Dashboard. This is the place where you would be able to check the input tax credit in the GST portal and see your return summaries.
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Enter the type of financial year and the period of filing the returns to which you would like to check ITC information. Selecting the right period enables you to see the right data regarding your purchases and tax credits.
Select GSTR-2A or GSTR-2B to see invoices of the suppliers. GSTR-2A is a dynamic report, and it keeps changing automatically as your supplier uploads invoices, and GSTR-2B is a static report that is generated on a monthly basis. The two are critical towards the check of ITC when learning how to check input tax credit in the GST portal.
Once you have chosen the form, you will have the invoices uploaded by all of your suppliers. Check the name of the supplier, his GSTIN, invoice number, taxable value, and tax amount. Make sure that you consider all the credits that are eligible in your ITC statement.
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Press the button with the icon of a download to save the report in either an Excel or a JSON file. This is to balance the purchase register with the information displayed on the portal under ITC, and there are no discrepancies or omissions.
Imagine that your business bought products valued at 100000 rupees and GST 18000 from the supplier ABC Pvt. Ltd. You are to have an invoice from ABC Pvt. Ltd. amounting to 18,000, which is to be available as ITC under GSTR-2B of the same month. This proves that your supplier submitted GSTR-1 properly, and you are free to claim that in GSTR-3B.
In the checking of the ITC, most of the taxpayers commit preventable errors that may result in false claims or wrong records. The most common errors that are not noted during learning how to check input tax credit on the GST portal are as follows:
Supplier Not Filing GSTR-1: Failure of the supplier to file and/or delayed filing of GSTR 1 leads to invoices not being shown in GSTR 2A and/or GSTR 2B, and thus the ITC will be missed.
Incorrect Invoice Details: ITC data may be mismatched due to errors made in the goals of GSTIN, invoice number or tax amount.
Disagreement between Books and Portal Data: Lack of reconciliation between purchase records and GST portal records of data usually results in ITC under-reporting or over-reporting.
Claiming Ineligible ITC: Businesses occasionally state the ITC on some of the goods or services which are limited by the GST law, which attract penalties.
Delayed ITC Claim: ITC may be lost on claiming it beyond the time limit permitted.
Portal Technical Glitches on Portal: Failure of systems to upload invoices can cause invoices to be not appropriately reflected.
Failure to reconcile regularly: Not conducting a regular review of the GSTR-2B predisposes the individual to many eligible credits being overlooked.
Effective management of the Input Tax Credit (ITC) has been a critical issue when it comes to all businesses registered under the GST. Learning how to check input tax credit in the GST portal would mean that the tax payable companies can ascertain the truth about the ITC claims, match invoices and avoid manipulation that will result in fines or frozen credits. The GST portal, with all the features such as GSTR-2A, GSTR-2B, and Electronic Credit Ledger, is a good medium that assists in monitoring and controlling the ITC. Regular checks assist in both claiming the right credit and keeping up with transparency and GST compliance.
It is also important that one is aware of the regulations and limitations that ITC includes, including ineligible credits in Section 17(5) of the CGST Act, the time constraint in claiming credit, and whether there is a need to reverse ITC. With a combination of normal portal reviews and appropriate interpretation of these guidelines, companies are able to maximise the creditable credit and still avoid being caught up in the intent to make a mistake or confrontation with the taxation department.
It is not only another compliance requirement but also a tactical move to learn how to check input tax credit in the GST portal. Regular check-ups, frequent reconciliation and compliance with the ITC rules are important in ensuring that businesses use their credits to the maximum and in no case are inaccurate records maintained, and their financial activities are reinforced by the GST regime.
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Input Tax Credit is a payment of tax on goods or services bought by a registered taxpayer, whereby a taxpayer is enabled to decrease the amount of tax the taxpayer pays on sales. The process of learning to check input tax credit in the GST portal assists in making sure that all credit for interest is claimed correctly.
Enter the GST portal with your username and password, go to the Returns Dashboard and choose the financial year and the period under which ITC needs to be viewed, and your ITC details can be seen in GSTR-2A or GSTR-2B. This enables you to view the input tax credit in the GST portal to avoid inconsistency.
GSTR-2A is a dynamic form that is constantly updated as the suppliers post the invoices, and GSTR-2B is a monthly summary which is auto-populated. They are required to both verify the input tax credit in the GST portal and match your records.
Some of the most frequent mistakes are the failure of the supplier to submit GSTR-1, wrong invoice specifications, technical malfunctions, ineligible ITC claim, and non-reconcilability of books with portal records. These problems are avoided by frequent examinations.
No. Exempt supplies cannot be brought under the claim of ITC, nor goods/services that are subject to Section 17(5) of the CGST Act.
In the event that ITC is not reflecting, ask your supplier to confirm with them whether or not they have done GSTR-1 properly. Results 11. The discrepancies should be corrected prior to filing your GSTR-3B.
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