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-
Note: ITC cannot be claimed if a taxpayer fails to file Form ITC-01 Form.
- 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.
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.
: 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.
- Inputs held in stock
- Inputs contained in semi-finished goods or finished goods
- 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.
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