Work out gst input tax credit instantly with clear inputs, formula shown and shareable results.
Input tax credit lets a business offset tax paid on purchases against tax collected on sales, so only value added is taxed in cash. Blocked credits — typically motor vehicles, personal consumption and exempt supplies — must be removed first.
Net tax
Eligible credit = input tax - blocked + opening credit; cash payable = output tax - eligible credit
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
Because the input is not used for taxable business supply, so allowing credit would subsidise consumption.
The excess is carried forward, and in export or inverted-duty cases it may be refundable.