A Study on Input Tax Credit Utilization Efficiency Among Msmes Under GST

This paper analyses the utilization efficiency of input tax credit by MSMEs under GST during the financial years 2017 to 2020.The study uses secondary data drawn from GSTR returns and related financial records.The findings indicate an average ITC utilization rate of 96.61 percent, with a positive correlation between ITC utilization and profitability (r = 0.548).Regression analysis also suggests that ITC utilization is an important predictor of business profitability.The study concludes that GST reconciliation software can improve matching accuracy and support better credit utilization.