Professional ITC Calculator
Maximize your tax savings with our expert ITC calculator. This ITC calculator determines your Input Tax Credit (ITC) and Net Tax Payable for efficient business tax management.
Output Tax (Sales)
Input Tax Credit (Purchases)
No History
Records will be saved locally when you copy results
How to Use the ITC Calculator
List Your Sales
Add all your sales transactions and the corresponding GST rates in the Output Tax section.
List Your Purchases
Enter your business-related purchase amounts and tax rates in the Input Tax section to calculate eligible ITC.
Review Net Liability
The calculator offsets input credit against output tax to show your net tax payable or carry forward balance.
What is Input Tax Credit (ITC)?
ITC is the core mechanism of the modern tax system. Using an ITC calculator, businesses deduct tax paid on inputs from tax collected on outputs. Tax is paid only on the value-added component, and 'tax on tax' is eliminated, protecting cash flow.
Valid Invoices for ITC
To use this tool successfully, ensure you have valid tax invoices. It helps you determine the exact eligible credit, making it indispensable for monthly tax filing and reconciliation.
IGST Offset Order
Different regions have specific offset hierarchies. In this tool, IGST is applied first to IGST liability, then to other components. It helps you follow the latest legal requirements.
CGST & SGST Cannot Cross-Offset
CGST cannot offset SGST and vice versa. The calculator provides a clear breakdown of how credits are utilized across different tax heads and automates these complex cross-utilization rules.
Blocked Credits
The tool must account for non-eligible expenses like personal travel or club memberships. Know which credits are blocked in your jurisdiction so your claim stays compliant.
Documentation Matters
Without a paper trail, no tool can validate your claim. This one emphasizes the importance of documentation and helps you keep figures audit-ready.
Claim Before Credits Lapse
Credits have an expiration date. Regular use of this calculator ensures you claim your credits before they lapse and reduces the risk of audit notices.
Avoid the '18% Trap' with a Reverse GST Calculator
Many people mistakenly subtract 18% from a total to find the tax. For example, $118 - 18% is $96.76. But if you add 18% to $96.76, you only get $114.17! A proper reverse calculator uses division to get the true base price of $100. This tool ensures your accounting is 100% accurate by following this exact logic.
*If you add 18% back to $96.76, you only get $114.17!
*Perfect! $100.00 + 18% GST = $118.00 exactly.
Magic Numbers for Your GST Inclusive Calculator
If you don't have access to this tool, use these 'Magic Numbers' to manually calculate base prices. Simply divide your total by the divisor shown in the reference table below.
| GST Rate | Divide Total By | Example Formula |
|---|---|---|
| 5% | 1.05 | Total ÷ 1.05 = Base Price |
| 12% | 1.12 | Total ÷ 1.12 = Base Price |
| 15% | 1.15 | Total ÷ 1.15 = Base Price |
| 18% | 1.18 | Total ÷ 1.18 = Base Price |
| 20% | 1.20 | Total ÷ 1.20 = Base Price |
| 28% | 1.28 | Total ÷ 1.28 = Base Price |
Why use our Reverse GST Calculator?
This calculator is built for speed and precision. Whether you are a business owner or a freelance consultant, it ensures you never overpay your taxes. By using it for back-calculating tax from total prices, you eliminate manual errors. Every result follows the latest tax authority guidelines.
Benefits of a GST Inclusive Calculator
A GST inclusive calculator is an essential tool for modern commerce. With this tool you can instantly split any total price into its base and tax components. It is ad-free and privacy-focused, and handles all your inclusive-to-exclusive conversions with accuracy.
ITC Calculator FAQ
Q1.What is Input Tax Credit (ITC)?
ITC is the credit you can claim for the GST you paid on business purchases. It is set off against the GST you collect on sales. The difference is your net tax payable or the amount you can carry forward.
Q2.How do I reconcile with GSTR-2B?
GSTR-2B is an auto-drafted statement of input tax credit based on your suppliers' filings. Use it to match your purchase records. Our ITC calculator helps you work out net liability after applying eligible credits; you should align the input side with GSTR-2B and your books before filing.
Q3.What are the GST return filing deadlines?
Deadlines vary by return type and jurisdiction. For India GSTR-3B, the due date is typically the 20th of the following month. GSTR-1 and annual returns have their own schedules. Always check the official portal for the current financial year's due dates.
Q4.Can CGST credit be used against SGST liability?
No. In India, CGST credit cannot offset SGST liability and vice versa. IGST credit can be used against IGST, then CGST, then SGST in that order. The calculator does not apply this hierarchy automatically; use it to sum output tax and eligible ITC by head and then apply offset rules as per law.
Q5.What if my input credit exceeds output tax?
The excess is typically carried forward to the next period or refund may be available under your jurisdiction's rules. The calculator can show a negative net (carry forward) so you know how much credit is available for the next return.
Q6.Which expenses are not eligible for ITC?
Common blocked credits include personal use, certain entertainment, and items specified under your local law (e.g. Section 17(5) in India). Always use valid tax invoices and ensure the purchase is for business use. The calculator totals the figures you enter; eligibility is your responsibility per law.
Q7.Is there a time limit to claim ITC?
Yes. Many jurisdictions require ITC to be claimed within a specified period (e.g. by the due date of the return for the September following the financial year, or as per local rules). Late claims may be disallowed, so file on time and reconcile regularly.
Q8.How do I use this tool for multiple tax heads?
Add separate lines for each sale or purchase with the correct rate. The tool sums output tax and input tax. For India, you may need to track CGST, SGST, and IGST separately and apply the legal offset order when filing on the portal.
Recommended Tools
Explore our other specialized GST and tax calculation tools for your business needs.
GST Exclusive Calculator
Use our GST Exclusive Calculator to quickly add tax to any base price. Perfect for B2B quotes and professional invoicing.
Reverse GST Calculator
Calculate tax backwards with our free Reverse GST Calculator. Find the original base price and tax amount from any total inclusive price instantly.
GST Interest Calculator
Calculate GST late payment interest accurately under Section 50 of CGST Act. Supports 18% and 24% interest rates for delayed GST payments and wrongful ITC.