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Input tax credit guide for e-commerce sellers

Input tax credit is real money back on your purchases. Here's how to claim every rupee you're entitled to — and avoid the blocks.

By the Launch My Office team · Updated 2026-06-22 · 6 min read

Input Tax Credit (ITC) lets you offset the GST you pay on business purchases against the GST you collect on sales. For sellers with real input costs — stock, packaging, ads, software, imports — ITC materially improves margins.

The GSTR-2B match

You can claim ITC only for invoices that appear in your auto-generated GSTR-2B (which reflects what your suppliers filed). If a supplier hasn't filed, the credit won't show and you can't claim it yet.

Common ITC sources for sellers

Where ITC is blocked

Pay suppliers who file their returns. Persistently non-filing vendors trap your credit. Reconcile GSTR-2B every month before filing GSTR-3B.

Maximising ITC

  1. Always get a proper tax invoice with your GSTIN.
  2. Reconcile purchases to GSTR-2B monthly.
  3. Chase suppliers whose invoices don't appear.
  4. Claim import IGST via your Bill of Entry.

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Frequently asked questions

What is input tax credit?

It's the GST you paid on business purchases, which you offset against the GST you collected on sales when filing GSTR-3B.

Why can't I see some credit?

ITC only appears once your supplier files their return and it reflects in your GSTR-2B. Unfiled supplier invoices block the credit.

Can I claim ITC on ads and software?

Yes, when used for business and properly invoiced to your GSTIN — including marketplace and platform ads.

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