When accountants prepare their monthly GST returns, they sometimes look for a master list of input tax credit rates. However, GST law works differently. Instead of a separate rate for claims, the system gives you back exactly what you paid, subject to strict conditions.
How the ITC rate is determined
Under the law, 'input tax' means the central tax, State tax, integrated tax or Union territory tax charged on any supply made to you (including reverse charge and import taxes). 'Input tax credit' simply means the credit of this input tax. This is defined in Section 2(62) and 2(63), CGST Act. For a practical guide to how the GSTN tracks and compares your declared ITC against what appears in GSTR-2B, see the GSTN ITC comparison FAQ.
Therefore, your ITC rate is 100% of the GST amount shown on a valid tax invoice, provided you use the goods or services in the course or furtherance of your business.
The details from GSTR-2B are auto-populated in your GSTR-3B return. Learn more about GSTR-3B auto-population
When your effective ITC rate drops to zero
Even if you pay 12% or 18% GST to a supplier, your eligible ITC rate becomes 0% in specific situations. You cannot claim any credit if the supply falls under the blocked list.
As per Section 17(5), CGST Act, input tax credit is not available on items such as:
- Motor vehicles for transporting up to 13 persons, unless used for specific businesses like passenger transport.
- Food, beverages, and outdoor catering.
- Beauty treatment, cosmetic surgery, and health services.
- Goods or services received for the construction of immovable property (other than plant and machinery) on your own account.
- Goods or services on which tax has been paid under the composition levy.
Partial credit for mixed usage
If you use an item partly for business and partly for personal use, the credit is restricted to the business portion. For example, if you use a mobile phone plan 70% for business and 30% for personal calls, you can only claim 70% of the GST paid on the bill as ITC, as per Section 17(1), CGST Act.
Worked example
An advertising agency in Mumbai purchases a new server for its office and hosts a client dinner.
| Purchase | GST paid | Eligible ITC rate | Amount claimable |
|---|---|---|---|
| Computer server | ₹18,000 (18%) | 100% of tax paid | ₹18,000 |
| Client dinner at hotel | ₹1,500 (5%) | 0% (Blocked under Sec 17(5)) | ₹0 |
Frequently asked questions
Is there a specific rate chart for input tax credit?
No, there is no separate rate chart for input tax credit. The rate of ITC is the same as the GST rate charged by your supplier on the invoice, such as 5%, 12%, 18%, or 28%.
Can I claim ITC on tax paid under the composition scheme?
No, you cannot claim any input tax credit on purchases from a supplier who pays tax under the composition levy. The ITC available is zero.
Check your eligible ITC
Our tool matches your purchase register against GSTR-2B so you know exactly which invoices are ready for an ITC claim. your GSTR-2B and purchase register files are read in your browser and never uploaded to any server.
Last checked: 10 October 2026. Sources: CGST Act Section 2, CGST Act Section 17, GSTN ITC comparison FAQ.