- Assam has tightened scrutiny of Goods and Services Tax (GST) Input Tax Credit (ITC) claims made by public works contractors to strengthen tax compliance and prevent revenue leakage.
- Input Tax Credit (ITC) allows businesses to offset the GST paid on purchases against the GST payable on outward supplies, ensuring tax is levied only on the value added at each stage of the supply chain.
- The mechanism eliminates the cascading effect of taxation (tax-on-tax), improving efficiency and neutrality in the GST system.
APSC Relevance: Taxation; GST
Course Purchase Query 