GST & Business
Quick answer: The FinTax24 Input Tax Credit (ITC) Calculator reconciles eligible and blocked ITC under Section 16 read with Section 17(5) of the CGST Act. It auto-detects blocked items (food & beverages, club membership, motor vehicles, cosmetics) and surfaces reversible ITC for non-business use, missing invoices in GSTR-2B and late-filed GSTR-1 by suppliers.
Calculate eligible ITC and ITC reversals under GST.
Follow these 4 steps for an accurate result.
Type SGST / CGST / IGST paid on inputs, input services and capital goods in the period.
Toggle on motor vehicles, food, club, etc. — ITC is blocked for these categories.
Type exempt + taxable turnover for Rule 42 reversal calculation.
See the eligible ITC, the Section 17(5) block, the Rule 42 reversal, and the net claimable amount.
Quick answers to common questions about input tax credit 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.
Key sources: Section 16 — eligibility for ITC, Section 17(5) — blocked credit schedule, GSTR-2B help and FAQ.
Reviewed by FinTax24 Content Team · Review date
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