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Define the terms “Input Tax” and “Input Tax Credit”.
Input Tax means the Integrated Tax (IGST), Central Tax (CGST), State Tax (SGST), and Union Territory Tax (UTGST) charged on supply of goods and/or services made to a registered person. Taxes deposited under reverse charge mechanism and on tax charged on import of goods also fall under the definition of Input tax. However, tax deposited by taxpayers under the composition levy are not considered as input tax. Input Tax Credit, on the other hand, means the credit of input tax on supplies of goods and/or services received from a registered person.
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