Managing Input Tax Credit (ITC) is no longer a month-end task; it is a continuous process of reconciliation across multiple ledger types. To stay compliant in 2026, you must monitor the "Many Faces of ITC."

1. The Reconciliation Pillars

3. Regulatory & Audit Scrutiny

• Sec. 16: The Eligibility Gate (Invoice, Goods, and Tax Payment).
• Sec. 17 (Rule 42/43): Apportionment logic for business vs. personal or exempt use.
• GSTR-9/9C: The final annual "True-up" and reconciliation.
• Enforcement: ITC verified by Jurisdictional Officers or the DGGI (Anti-Evasion).

Critical "Action" Scenarios