Input Tax Credit (ITC), explained for solo consultants

Input Tax Credit is the mechanism that stops GST from being charged on top of GST. As a consultant, it can meaningfully lower what you actually pay each filing period — but only if you track it from the start.

What ITC actually is

When you buy something for your business — a laptop, software, a co-working desk — you pay GST on it. ITC lets you subtract that GST from the GST you collected from clients. You remit only the difference. Your net liability is output tax minus eligible input tax.

What qualifies

• The expense is genuinely for your business.
• You have a valid tax invoice from a GST-registered supplier.
• The supplier actually reported the sale (it shows up in your auto-drafted statement).
• You've received the goods or service.

What doesn't

Personal expenses, most food and entertainment, and a handful of specifically blocked categories aren't claimable. Mixing personal and business spending on one bill is the fastest way to lose a claim, so keep them separate.

Make it effortless

In E-BillR, every expense you log can carry the GST you paid and a 'Claim ITC' flag. Your GST position on the dashboard then nets output tax against claimed input tax automatically, so you always know what you actually owe — not just what you collected.