GST is an indirect tax levied on the supply of goods and services in India. It is a destination-based tax that is charged at each stage of the supply chain, from the manufacturer to the consumer. On the other hand, income tax is a direct tax imposed on an individual or entity's income, including salary, business profits, capital gains, and more.

Input Tax Credit And Its Influence On Income Tax

One of the significant impacts of GST on income tax is the provision of Input Tax Credit (ITC). Under GST, businesses can claim ITC on the taxes paid on inputs used in the production or provision of goods and services. This reduces the overall tax liability and positively affects the taxable income, resulting in a potential decrease in income tax payable.

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