Input tax
Input tax is a type of credit that a business can claim against the taxes. It has paid on the purchases made for its business operations. It considers as an asset under the GST regime because it is a recoverable tax credit and can use to offset the output tax liability, thereby reducing the overall tax burden of the business.
For more information to visit: https://www.gst.gov.in/
When a business purchases goods or services, it pays tax which can be claimed as a credit against the output tax liability. The balance amount of it credit can carry forward to the next tax period. It can refund if the input tax credit exceeds the output tax liability. Therefore, it considers an asset as it has a monetary value that can use to offset future tax liabilities.
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