Input Tax Credit (ITC) Calculator

Section 16(4) allows ITC to be claimed up to the date of filing the annual return (GSTR-9 / GSTR-9C) for the relevant financial year, or the date of filing the relevant monthly return — whichever is earlier, for FY 2017-18 onwards. After 30 November of the next financial year, no further ITC is allowed.

Blocked ITC items under Section 17(5) include motor vehicles (with some exceptions), food and beverages, outdoor catering, beauty treatment, health services, cosmetics and plastic surgery, membership of clubs, health and fitness centres, rent-a-cab, health insurance, and travel benefits on foreign travel.

Rule 42 mandates monthly reversal of common-credit ITC attributable to exempt supplies, computed as (Exempt turnover / Total turnover) × Common-credit ITC. The reversals are added back when used for exclusively taxable supplies next year. Calculator applies this rule automatically.

If a supplier files GSTR-1 late, the corresponding ITC shows up in your GSTR-2B only after the supplier files. No ITC can be claimed for periods when 2B does not have the entry. Credit can be reclaimed in the next month once 2B reflects the invoice.

Yes — Section 16(1) allows ITC on capital goods used for business. Useful life of capital goods is treated as 5 years, and the reversal on non-business use is recovered through Rule 43 valuation (5% per year for 5 years).

GSTR-9C reconciliation requires the consolidated ITC claimed vs the credit appearing in 2B. Mismatches over the threshold attract Section 16(4) reversibility and may be flagged as revenue leakage during audit. Use the calculator monthly to keep reconciliation clean.