GST is the major tax reform in Indian economy and Input Tax Credit (ITC) is the backbone of the GST regime. Input Tax Credit that make GST a value added tax i.e., collection of tax at all points after allowing credit for the inputs. The procedures and restrictions laid down in these provisions are important to make sure that there is seamless flow of credit in the whole scheme of transition without any misuse. Thus, the clarity of rules of an ailment and utilization have significant impact on making GST a taxpayer-friendly tax. Input credit allows a seller to reduce the tax burden being paid by claiming offset for the taxes already paid on inputs. So ITC will play an important role in growth of Indian economy & it is one of the most important reasons for the introduction of GST
