Input Tax Credit (ITC) under the Goods and Services Tax (GST) system allows businesses to claim credits for the tax paid on inputs used in the production of goods or services. To effectively utilize ITC for reducing tax liability, ensure you maintain accurate records of all purchases and sales. Eligible ITC can be claimed when filing GST returns, provided the purchases are from registered suppliers and comply with GST regulations. Regularly reviewing Input Tax Credit eligibility can help businesses maximize savings. Additionally, ensure timely filing of returns to avoid penalties and enhance cash flow, contributing to overall financial health.