Form GST ITC-01

Taxpayers who have recently registered under the GST regime should fill Form GST ITC-01 to claim the available Input Tax Credit. In other words, Form GST ITC -01 is a declaration form filed on the GST portal for claiming the eligible ITC. Note: Filling of this form is mandatory to claim ITC. In this article, we will help you understand:

When Should ITC-01 Be Filled?

ITC-01 is required to be filed if-

• The GST registration is applied within 30 days of becoming liable to pay GST [Section 18(1)(a)],
• A taxpayer is opting to take a voluntary GST registration,
• A taxpayer who has opted out of the composition scheme continues to be registered under GST as a regular taxpayer [18(1)(b)],
• A previously exempted supply becomes a taxable supply.

Note: ITC cannot be claimed if a taxpayer fails to file Form ITC-01 Form.

Types Of Input Tax Credit Allowed

Taxpayers can claim Input Tax Credit for:

• Inputs held in stock on the cut-off date.
• Inputs in semi-finished goods on the cut-off date.
• Inputs in finished goods on the cut-off date.
• Capital goods held on the cut-off date.

Note: The ITC, as mentioned above, is available only when a composition scheme dealer opts out of the composition scheme but continues as a regular taxpayer or when exempted supplies become taxable under GST.

Steps To File ITC-01

• Login to the GST portal.
• Click on ‘Services’ and then under ‘Returns’ select ‘ITC forms > ITC 01’.
• Click on ‘Prepare online’ or ‘Prepare offline’ as suitable.
• Choose the type of ITC Claim.
• Fill the asked details and select the applicable clause and sub-clause of section 18 under which the claim is made (in the ‘Claim made under’ tab).
• Fill up these required details invoice-wise:
  • Select the type of goods.
    1. Inputs held in stock
    2. Inputs contained in semi-finished goods or finished goods
    3. Capital goods.

• • Enter the GSTIN of the supplier, invoice number and invoice date.

• • Select Unit Quantity Code (UQC).
  • Add the description of goods.
  • Enter the quantity, Invoice amount and ITC amount (CGST and SGST or IGST).
  • For claims made under 18(1)(d), the date on which the goods became taxable should also be entered.

• Click on the ‘Add’ button to continue adding more invoices or click on ‘Save’ to proceed to submit.
• ‘Preview’ the filled in details and then click on ‘Submit’ and then ‘Proceed’.
• Upload the certificate issued by the CA (if applicable). For any claims that exceed ₹2,00,000, the details of Chartered Accountant or Cost Accountant need to be updated along with the certificate. The basic detailed required here are:
  • Name of the CA firm,
  • Name of the CA certifying the form,
  • Membership number of the CA,
  • Date of issuance of the certificate.

Note: The file size of the certificate (to be uploaded) should not exceed 500KB, and it should be in JPEG format.

• File with Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Points To Remember

• ITC on services cannot be claimed through Form ITC-01.
• ITC on capital goods can be claimed through ITC-01 form only if the composition dealer has opted out of the composition scheme or when an exempted supply becomes taxable supply.
• Details of ITC on purchases have to be entered invoice wise (as on the cut-off date).
• ITC on invoices up to one year old can be claimed in case of inputs (goods) and up to five years in case of capital goods.
• If the ITC claim is more than ₹2,00,000, then the taxpayer has to upload a certificate from a Chartered Accountant or Cost Accountant along with this form.