What is Input tax Credits
Input tax Credits (Definition)
Input tax credits, also known as GST credits, are a form of credit that a business may claim for the goods and services tax (GST) included in the price of goods and services that a business may purchase. Used to reduce a business’s GST liability, a business must first be registered for GST to make a claim. There are strict rules that govern when input tax credits may or may not be claimed, as well as time limits applicable to when a claim may be submitted. While a tax invoice will typically specify the GST amount, a business is also able to work out the GST amount and the applicable GST credit themselves.
