GST input tax credit

Credit for tax paid on purchases, claimable only when conditions are met — including that your supplier actually filed.

What input credit is

Tax you paid on business purchases can be set against the tax you collect on sales, so you remit only the difference.

This is what makes GST a tax on value added rather than a cumulative tax at every stage. It is also the mechanism with the most conditions attached.

GST input tax credit, in three chapters

The conditions

Broadly: you hold a valid tax invoice, you received the goods or services, the supplier has paid and reported the tax, and you claim within the permitted period.

The third condition is the one outside your control, and it is the one that causes the most trouble.

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GST input tax credit, answered.

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