Input tax credit (ITC) allows businesses to claim a credit for taxes paid on business inputs to offset against taxes due on business outputs. This helps avoid double taxation (cascading of taxes) and reduces the overall tax burden. Key conditions to claim ITC include possessing a valid tax invoice, having received the goods or services, ensuring the supplier has paid the taxes to the government, and filing applicable returns. ITC can be claimed for both goods and services taxes, subject to restrictions on exempted items. Capital goods purchases also qualify for ITC.