GST Input Tax Credit Calculator
Calculate your Net Cash Liability after set-off using Rule 88A Logic. Includes a built-in Blocked Credit (Sec 17(5)) Audit.
180 Days Rule
If you don't pay your supplier within 180 days, you must reverse the claimed ITC with 18% interest.
Supplier Default
If your supplier hasn't filed GSTR-3B, your ITC is invalid. It must appear in your GSTR-2B to be claimed.
RCM Liability
You must pay RCM liability in CASH first. You can claim it as ITC only in the next month's return.
Consequences of Wrong ITC Claim
Claiming ineligible ITC (Blocked Credits) or claiming more than what is available in GSTR-2B attracts a penalty of 24% Interest + Reversal of the Credit.
Master Rule 88A: Order of Utilization
The most common error in GST filing is using the wrong credit to pay liability.Rule 88A dictates the strict order in which ITC must be used.
| Input Credit Source | 1st Priority (Must Pay) | 2nd Priority | 3rd Priority |
|---|---|---|---|
| IGST Credit | IGST Liability | CGST / SGST (Any Order) | - |
| CGST Credit | CGST Liability | IGST Liability | SGST (Blocked) |
| SGST Credit | SGST Liability | IGST Liability | CGST (Blocked) |
Section 17(5): Blocked Credits (No ITC)
Even if you have a valid GST Invoice, you cannot claim credit for these specific items unless you are in the same line of business.
Motor Vehicles
Cars with <13 seats. (Allowed only for transporters/dealers)
Food & Catering
Lunch, Dinner, Office Parties, Outdoor Catering expenses.
Personal Use
Goods taken home for personal consumption by directors/partners.
Construction
Cement/Steel for constructing office building (Capitalized).
Insurance
Health/Life insurance for employees (unless mandatory by Govt).
Gifts/Samples
Free samples or gifts given to clients (Input credit must be reversed).
4 Mandatory Conditions to Claim ITC
- Possession of Tax Invoice: You must have the physical or digital copy of the GST Invoice or Debit Note.
- Receipt of Goods/Services: You must have actually received the material. For "Bill to - Ship to" models, deemed receipt applies.
- Tax Paid to Govt: Your supplier must have filed their GSTR-3B and paid the tax to the government.
- Return Filed: You must have filed your own GSTR-3B for the relevant month.
Quick Summary
- IGST First: Always exhaust IGST credit before touching CGST/SGST.
- No Cross-Utilisation: CGST credit cannot pay SGST liability.
- GSTR-2B: ITC claim cannot exceed the amount reflected in GSTR-2B.