Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs.In simple words, means reducing the taxes paid on inputs from taxes to be paid on output.
Say, you are a manufacturer –
Tax payable on output (FINAL PRODUCT) is Rs 450
Tax paid on input (PURCHASES) is Rs 300
You can claim INPUT CREDIT of Rs 300 and you only need to deposit Rs 150 in taxes.
Input Credit in GST
Input Credit Mechanism is available to a individual or a organisation which is covered under the GST Act.ie manufacturer, supplier, agent, e-commerce operator, aggregator or any of the persons mentioned , registered under GST, They are eligible to claim INPUT CREDIT for tax paid by you on your PURCHASES.