--- title: "ITC Calculator - GST Input Tax Credit Set-Off Tool" description: "Free ITC calculator for GST Input Tax Credit set-off. Enter IGST, CGST and SGST credits and see your net tax liability before filing GSTR-3B. No login." canonical: "https://busy.in/calculators/itc-calculator/" --- # Free GST ITC Calculator Compute Input Tax Credit Set-Off Online ## Free GST Input Tax Credit (ITC) Calculator Enter tax payable and ITC credits available to calculate GST Input Tax Credit online under IGST, CGST & SGST. Tax Payable Input Tax Credit IGST ₹ ₹ CGST ₹ ₹ SGST ₹ ₹ Calculate Reset Tax Credit Summary Category IGST CGST SGST Gross Tax Payable 0 0 0 Remaining ITC 0 0 0 IGST used for CGST 0 0 0 IGST used for SGST 0 0 0 Net Tax Payable 0 0 0 IGST credit adjusts IGST first, then CGST, then SGST. CGST credit adjusts only CGST. SGST credit adjusts only SGST. Enter tax payable and ITC credits available under IGST, CGST and SGST to calculate how your Input Tax Credit can be adjusted before filing GSTR-3B. Accurate ITC calculation helps businesses understand their actual GST cash payable after eligible credit utilisation. BUSY's free ITC calculator follows the prescribed GST credit adjustment logic, where IGST credit is used first, and the remaining eligible credits are applied as per the permitted utilization order. This helps you use available ITC correctly, avoid manual set-off errors and check unused ITC balance that may be carried forward. ## India's No.1 GST Billing & Accounting Software - Auto GST & ITC Calculations - 1-Click Filing & Reconciliation - Complete Inventory Management - End-to-End Accounting Solution - Auto E-Way Bill & E-Invoice ## What is Input Tax Credit (ITC)? Input Tax Credit (ITC) is the GST paid by a business on purchases, expenses and inward supplies that can be used to reduce GST liability on sales. Instead of paying GST on the entire output tax amount, eligible businesses can claim credit for GST already paid on business-related purchases. ITC plays an important role in reducing tax costs and avoiding cascading taxation. However, GST law prescribes specific rules for how available credit can be adjusted across different tax heads. This tool is useful for: GST-registered businesses Accountants and finance teams Chartered Accountants Tax consultants GST return preparers Business owners managing GST compliance Enter the following details: - IGST payable - CGST payable - SGST payable - Available IGST credit - Available CGST credit - Available SGST credit ## How to Use BUSY's Free ITC Calculator Online? BUSY's ITC Calculator is built for quick pre-filing checks. You can calculate the credit adjustment in a few simple steps. 1 ### Enter Your GST Liability Enter your GST liability under IGST, CGST and SGST based on your GSTR-3B draft. 2 ### Add Available Credits Add available IGST, CGST and SGST credits from your Electronic Credit Ledger balance. 3 ### Click Calculate Click Calculate to apply the prescribed ITC set-off sequence across applicable GST liabilities. 4 ### View the Results View total ITC utilised, net GST payable and any remaining credit balance. ## Types of GST Input Tax Credit You Can Calculate Understanding each tax head helps you read the calculator output correctly. The GST credit utilisation order is based on Section 49A, Section 49B and Rule 88A, where IGST credit is used first before other credits are applied. IGST (Integrated GST) IGST is levied on inter-state supplies of goods or services and on imports into India. IGST credit is the most flexible ITC head. It is used first against IGST liability and the remaining balance can be used against CGST, SGST or UTGST liability as permitted. CGST (Central GST) CGST is levied by the Central Government on intra-state supplies and is collected along with SGST. CGST credit is first used against CGST liability. Once IGST credit is fully exhausted, remaining CGST credit may be used against IGST liability. CGST credit cannot be used to pay SGST or UTGST liability. SGST (State GST) SGST is levied by the State Government on intra-state supplies and is collected along with CGST. SGST credit is first used against SGST liability. Once IGST credit is fully exhausted, remaining SGST credit may be used against IGST liability. SGST credit cannot be used to pay CGST liability. UTGST (Union Territory GST) UTGST applies in place of SGST in union territories such as Chandigarh, Andaman and Nicobar Islands, Dadra and Nagar Haveli and Daman and Diu, Lakshadweep and Ladakh. UTGST credit follows the same broad treatment as SGST credit. It is used against UTGST liability first and can then be used against IGST liability as permitted. Note: This calculator does not check blocked credits under Section 17(5) of the CGST Act. Exclude ineligible ITC such as blocked motor vehicle credit, food and beverage credit, works contract credit used for construction, club membership and other restricted credits before entering your ITC balance. ## Example of ITC Calculation with Adjustment The following example shows how BUSY's ITC Calculator applies ITC set-off rules to reduce cash outflow. ### Tax Payable (Output GST) IGST ₹12,000 CGST ₹10,000 SGST ₹10,000 ### Input Tax Credit (Available) IGST Credit ₹18,000 CGST Credit ₹3,000 SGST Credit ₹4,000 ### Adjustment Process Use IGST Credit to pay IGST: ₹12,000 → Balance IGST credit ₹6,000 Use remaining IGST credit for CGST: ₹6,000 → Balance CGST payable ₹4,000 Use CGST own credit ₹3,000 → Final CGST payable ₹1,000 SGST: ₹10,000 – SGST credit ₹4,000 → Final SGST payable ₹6,000 ### Final Payable IGST ₹0 CGST ₹1,000 SGST ₹6,000 Total Cash Outflow ₹7,000 This structured adjustment reduces the total cash payment to ₹7,000 against a gross GST liability of ₹32,000. The calculator gives you this result instantly, without manual spreadsheet work. ## Benefits of Using a Free ITC Calculator Online Manually applying GST set-off rules can be confusing, especially when multiple tax heads are involved. BUSY's ITC Calculator simplifies the process. Accurate Credit Utilisation Applies GST adjustment rules automatically. Faster GSTR-3B Preparation Estimate tax payable before filing returns. Reduced Manual Errors Avoid incorrect credit utilisation and calculation mistakes. Better Cash Flow Planning Know your expected GST cash outflow in advance. Quick Reconciliation Compare liabilities with available ITC instantly. Compliance Support Understand GST liability before making payments. ## Explore Relevant Guides To understand ITC eligibility, blocked credits, documentation rules and reconciliation steps, refer to the complete guide to Input Tax Credit under GST: [Complete Guide to Input Tax Credit Under GST in India](https://busy.in/gst/complete-guide-to-input-tax-credit-under-gst-in-india/) This blog dives deeper into ITC eligibility, blocked credits under Section 17(5), documentation rules, and practical tips to avoid mismatches during reconciliation. ## Frequently asked questions ### What is the BUSY ITC Calculator? BUSY's ITC Calculator is a free online tool that shows how available Input Tax Credit can be adjusted against GST liabilities under IGST, CGST and SGST. It helps accounts teams and GST filers estimate the exact cash amount payable before filing GSTR-3B. ### How does the ITC Calculator work? You enter GST payable and available ITC for each tax head. The calculator applies IGST credit first and then adjusts CGST and SGST credits as per the permitted set-off logic. The output shows net cash payable and any unused ITC balance. ### Why is the order of ITC utilisation important? The order matters because GST credit cannot be used freely across all tax heads. IGST credit must be exhausted first. CGST credit cannot be used for SGST liability, and SGST credit cannot be used for CGST liability. Following the correct order helps avoid excess cash outflow, short payment, and errors while finalising GSTR-3B. ### Who should use this calculator? GST-registered businesses, accounts teams, tax consultants and Chartered Accountants can use this calculator before preparing or reviewing GSTR-3B. It is useful when credit is available under multiple tax heads and the final cash payment needs to be checked. ### Can this calculator help reduce GST cash payment? Yes. It helps you use eligible ITC before depositing GST in cash. This can reduce unnecessary cash outflow, especially when there is a high IGST credit balance that can be adjusted against more than one liability head. ### Does the calculator show unused ITC? Yes. The Tax Credit Summary shows credit used and remaining ITC balance. This is useful when credit under one head exceeds the current period liability and the unused eligible balance needs to be carried forward. ### Is this calculator useful before filing GSTR-3B? Yes. You can use it before finalising GSTR-3B to check your net cash liability after ITC adjustment. This helps avoid both excess cash deposit and short payment. ### Do I need to account for RCM liability separately? Yes. GST payable under Reverse Charge Mechanism must be paid in cash and cannot be adjusted using ITC at the time of payment. Once paid, eligible RCM tax may become ITC subject to GST conditions. ### Are blocked credits under Section 17(5) included? No. The calculator does not identify blocked credits under Section 17(5). Remove ineligible ITC before entering the available credit amount, such as blocked motor vehicle credit, food and beverage credit, club membership credit, and restricted works contract credit. ### Do I need a login or account to use this calculator? No. BUSY's ITC Calculator is free to use on the web without registration or login. ### How does this connect with BUSY Accounting Software? BUSY helps with purchase records, GST reports, GSTR reconciliation and GST payment workflows. The ITC Calculator acts as a quick pre-filing check before you finalise GST payment in your accounting system.