Input Tax Credit (ITC) offers several benefits to businesses under GST. It helps reduce tax liability by allowing businesses to claim credit for the GST paid on purchases, which can be used to offset the tax on sales. ITC improves cash flow by reducing the actual amount of GST to be paid. It also prevents cascading tax effects, where tax is paid on tax, thereby lowering overall costs. Additionally, ITC ensures transparency and compliance in the tax system, benefiting both businesses and the government.