What is an ITC claim?

1. ITC = Input Tax Credit. GST is only meant to tax the value YOU add. So the GST you paid on business purchases - stock, packaging, courier, marketplace commission, software - comes back to you as credit against the GST you collect on sales.

2. Example: you owe ₹18,000 GST on the month's sales, and you paid ₹8,000 GST on purchases and marketplace fees → you claim ₹8,000 ITC and pay only ₹10,000 in cash.

3. The conditions (all must hold): you have a proper tax invoice in your GSTIN's name, you actually received the goods/services, the supplier filed the invoice (it shows in your GSTR-2B), and you pay the supplier within 180 days.

4. Where you claim it: Table 4 of your GSTR-3B. The portal pre-fills it from your GSTR-2B - claim what 2B shows, not what your ledger hopes.

5. What's blocked (Section 17(5)): GST on personal expenses, food and beverages, most motor vehicles, and goods bought under composition - that credit can't be claimed even with an invoice.

6. For marketplace sellers, the big recurring ITC is platform commission and ad fees (18% GST on all of it) - check it lands in your 2B every month.

⚠️ Claiming ITC that isn't in your GSTR-2B is the fastest route to a mismatch notice - if the supplier didn't file, chase the supplier, don't claim ahead.