Is credit of tax paid on every input used for supply of taxable goods or services or both is allowed under GST?
Yes, Input Tax Credit (ITC) is generally available for most goods and services under GST, except for a specific list of items mentioned in the law. The restricted items primarily include goods and services used for personal consumption, inputs that contribute to the construction of immovable property (excluding plant and machinery), telecommunication towers, and pipelines installed outside the factory premises. Additionally, any taxes paid due to non-compliance, fraud, or tax evasion detected by authorities are also ineligible for ITC claims. These restrictions ensure that ITC benefits are availed only for legitimate business-related expenses.