What is input GST and output GST?

 

GST service provider in Noida

Input GST (Input Tax Credit - ITC)

  • What it is: GST that you pay on your purchases (goods or services).
  • Example: If you buy raw materials or services for your business, the GST you pay on those is your Input GST.
  • Purpose: You can claim this GST as credit to reduce your tax liability.

Output GST

  • What it is: GST that you collect from your customers when you sell goods or services.
  • Example: If you sell a product and charge 18% GST, that 18% is your Output GST.
  • Purpose: This is the tax you owe to the government.

 

How It Works Together

Particular

Amount (₹)

Output GST (collected from customer)

₹10,000

Input GST (paid on purchases)

₹7,000

GST payable to govt

₹3,000 (i.e., ₹10,000 - ₹7,000)
Location: Noida, Uttar Pradesh, India

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