How to use TaxAdda's GST Payment and Input Tax Credit Calculator?
- Step 1 :You need to enter GST payable under IGST, CGST & SGST excluding GST payable under reverse charge.
- Step 2 :Enter Input tax credit available including balance of ITC carried forward from last period but excluding credit on account of Reverse charge.
- Step 3 :Enter GST payable under Reverse Charge mechanism, calculator will take its Input tax credit in same period to minimize cash outflow as ITC of GST paid under RCM is available immediately
How is optimum GST Input tax credit calculated?
For calculating optimum input tax credit, ITC is utilized in such a way that balance of ITC is after adjustment is NIL or minimum (in line with GST ITC Rules) & cash outflow for payment of GST is also minimum.
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Frequently asked questions
What is GST Input Tax Credit (ITC)?
Input Tax Credit (ITC) under GST allows registered businesses to reduce their tax liability by claiming credit for the GST paid on purchases of goods and services used for business purposes.
How does the GST Input Tax Credit Calculator work & what inputs are needed to use this calculator?
Our GST Input Tax Credit Calculator helps taxpayers calculate the optimum utilization of ITC based on the latest rules under CGST, SGST, IGST, and UTGST. You simply enter eligible ITC and tax liabilities (including RCM), and the tool provides a compliant utilization breakdown.
Who can use this ITC calculator?
This calculator is ideal for businesses registered under GST, accountants, tax professionals, and CAs who want to ensure maximum and lawful use of input tax credit in accordance with updated GST provisions.
What is "Optimal Use of Input Tax Credit" and why is it important?
Optimal use of Input Tax Credit refers to strategically utilizing your available ITC to minimize your net GST payable. This is crucial for improving cash flow, reducing tax burdens, and ensuring efficient financial management. Our calculator simplifies this complex process.
Can I use this calculator for all types of GST ITC claims?
Yes, our comprehensive GST ITC calculator is designed to assist businesses in calculating and optimizing input tax credit across various scenarios with updated GST rules. like cases where accumulated balance in SGST ITC is high with NIL balance in CGST ITC , because of old/default method of set off used on GST portal. Our calculator will stategically set off the ITC in such manner that balance of ITC in CGST & SGST after set off for current period is equal or near equal.
Is this GST calculator updated with the latest GST laws and rules?
Our GST payment and Input Tax Credit calculator is in line with updated Section 49A, 49B & Rule 88A of GST Act to reflect the most current GST laws, rules, and amendments, providing you with accurate and reliable calculations for optimal ITC utilization.
What is the order of utlization of input tax credit under GST?
- IGST credit is to be used first to pay IGST liability. Any remaining IGST credit can then be used for CGST and/or SGST/UTGST liabilities, in any order or proportion.
- CGST credit is to be used first to pay CGST liability, If any remains, it can be used for IGST liability provided IGST credit is fully utilized before that. CGST credit cannot be used for SGST/UTGST liabilities.
- SGST/UTGST credit is to be used first for SGST/UTGST liability first, any surplus can be used for IGST liability provided IGST credit is fully utilized before that. SGST/UTGST credit cannot be used for CGST liability.
What are the benefits of using an online GST ITC Set-off Calculator?
Using an online GST ITC Set-off Calculator like ours offers numerous benefits including accuracy in calculations, significant time savings, improved compliance with GST regulations, and identification of opportunities for optimal tax credit utilization, leading to enhanced financial efficiency.
How can I accurately determine my net GST liability using ITC?
Our intuitive calculator simplifies the process of determining your net GST liability. By inputting your output tax and available input tax credits, it provides a clear calculation of the amount of GST payable after optimal ITC utilization, helping you manage your tax obligations efficiently.
Does the calculator consider blocked credits under Section 17(5) of CGST Act?
No. This calculator assumes that the input credits entered are eligible credits. Users must ensure that ineligible ITC under Section 17(5) is excluded before using the tool.
Can this GST calculator be used for GSTR-3B or GSTR-9 preparation?
The calculator’s output assists in accurately reporting ITC in GSTR-3B and annual returns (GSTR-9) by providing structured ITC utilization details.
How does a GST Input Tax Credit Calculator help my business?
TaxAdda's advanced GST Input Tax Credit calculator helps businesses precisely determine the optimal utilization of available ITC. It takes into account the latest GST laws and rules, ensuring minimum cash outflow and compliance.
How does this calculator ensure compliance with updated GST laws?
The tool is fully compliant & updated with GST law (Section 49A, 49B & Rule 88A) adheres to, including: Order-based credit allocation: IGST → CGST → SGST. Reverse Charge Mechanism (RCM) adjustments.
How does it handle complex scenarios like Reverse Charge under GST?
How does this tool outperform other generic GST calculators?
Other available online tools are not considering the cases of accumulated ITC in SGST due to default system of GST Portal whereas TaxAdda's calculator is covering all the scenarios for optimum utilization of ITC ensuring stretegic use of ITC in future periods too.