ITC

ITC, or Input Tax Credit, is a mechanism that allows businesses to recover the Goods and Services Tax (GST) paid on purchases and expenses related to their business activities. When a business buys goods or services, it pays GST to suppliers; this paid GST can be deducted from the GST collected on sales. Essentially, ITC helps avoid double taxation, ensuring that businesses only pay the net GST amount to the government. It's an important feature of GST systems aimed at maintaining transparency and fairness in tax collection.