Can I claim input tax credit on every business purchase?
Reviewed June 2026
Input tax credit is one of GST's biggest gifts to a business — but it is conditional, not automatic. The law blocks credit on certain categories (for example several motor vehicles, food and beverages, and goods or services used for personal purposes), regardless of how genuine the expense is.
Just as importantly, your credit depends on your supplier: the invoice must be reported by them and appear in your statement before the credit becomes safely claimable. A supplier who files late or not at all affects your working capital, through no fault of yours.
The businesses that get full value from ITC do two things: they know the blocked categories before spending, and they reconcile their purchase register with the portal every month — gently chasing suppliers while the trail is fresh. That monthly habit keeps credits flowing and the books clean. It's exactly the kind of routine we run for clients.
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This explainer simplifies the law on purpose and is general guidance, not advice on your specific facts. Rules, rates and thresholds evolve. For your situation, talk to us — that first conversation is exactly what we’re here for.