Upon acquiring the GST registration, individuals engaged in regular business usually possess a stock of inputs, capital goods, and finished goods at their business premises. The GST paid on these purchased goods cannot be claimed as ITC before the date of obtaining the GST registration. Only after securing the GST registration, can taxpayers avail themselves of the input tax credit for the GST paid on these inputs, capital goods, and finished goods held in stocks, starting from the effective date of registration. To claim this input tax credit for newly registered taxpayers under GST, a declaration form called GST Form ITC-01 is required to be filed on the GST portal. It’s a mandatory step for claiming ITC on the existing stock of goods.
Instances And Types of GST Form ITC-01 Filing
Under Goods and Services Tax compliance, the necessity to file GST Form ITC-01 arises under specific circumstances.
Instances When Form ITC-01 is Required to be Filed
These situations are outlined as follows:
1. Application for GST Registration Within 30 Days
Section 18(1)(a): When an entity applies for GST registration under 30 days of becoming liable to pay GST, Form ITC-01 must be filed.
2. Voluntary Registration
Section 18(1)(b): Whenever an individual or entity opts for voluntary GST registration, they are obligated to submit GST Form ITC-01.
3. Transition from Composition Scheme to Regular Taxpayer Status
Section 18(1)(c): In the event an entity decides to opt out of the composition scheme and continues their registration as a regular taxpayer, GST Form ITC-01 filing is mandatory.
4. Transformation from Exempt Supply to Taxable Supply
Section 18(1)(d): When a supply of goods or services that was previously exempt from GST becomes taxable, GST Form ITC-01 must be filed.
Permissible Types of Input Tax Credit
Input Tax Credit can be claimed for specific categories of inputs and capital goods in certain circumstances. The allowable types of ITC are delineated as follows:
1. Input Tax Credit for Stocked Inputs on the Cut-Off Date
ITC can be claimed for inputs that are held in stock as of the cut-off date, provided the relevant conditions are met.
2. Input Tax Credit for Inputs Embedded in Semi-Finished Goods on the Cut-Off Date
ITC is eligible for inputs integrated within semi-finished goods as of the cut-off date, subject to fulfilling the requisite criteria.
3. Input Tax Credit for Inputs Incorporated in Finished Goods on the Cut-Off Date
ITC is permissible for inputs that are part of finished goods as of the cut-off date, provided the necessary conditions are satisfied.
4. Input Tax Credit for Capital Goods on the Cut-Off Date
ITC can be availed for capital goods that are in possession as of the cut-off date, meeting the relevant requirements.
Cut-off dates for claiming of ITC and the Timelines
The cut-off Dates for ITC Claiming and Timelines are as mentioned below:
| Case | Cut-off Date | Number of Times ITC can be Claimed by Filing ITC-01 |
| When application for the GST registration is made within a period of 30 days of becoming liable for paying tax [Section 18(1)(a)] | Date immediately preceding that date when he becomes liable for payment of tax | Once |
| When any person who opts for the voluntary registration [Section 18(1)(b)] | Date immediately preceding grant of registration | Once |
| When any person opts out of composition scheme but also continues to be registered and then pays tax as a regular taxpayer [Section 18(1)(c)] | Date immediately preceding that day when he opts to pay the tax under regular mode | Once in a year |
| When an exempt supply of goods or services becomes taxable supply [Section 18(1)(d)] | Date immediately preceding that date when supply becomes a taxable supply | Once in a month |
For example, if Mr. A, a trader, opts for voluntary registration on 29 December 2018, he would be eligible to claim ITC for inputs held in stock, inputs in semi-finished goods, finished goods in stock, and capital goods as of 28 December 2018.
Key Considerations When Filing GST Form ITC-01
Filing GST Form ITC-01 for claiming Input Tax Credits involves several crucial points to bear in mind:
1. Eligible ITC Categories: Be aware of which ITC categories can be claimed using GST Form ITC-01. It is important to note that ITC related to services cannot be claimed through this form. ITC in relation to capital goods can only be claimed when a composition dealer opts out of the composition scheme and when exempted supplies shift to taxable supplies.
2. Invoice Details: Ensure that comprehensive and invoice-wise details of ITC on purchases as of the cut-off date are available. Accurate record-keeping is essential to support your ITC claim.
3. Timely Filing: Form ITC-01 must be filed within 30 days from the date of registration or migration to a regular GST scheme. Compliance with this timeline is critical.
4. Claim Window: Understand the timeframes for claiming ITC. In the case of inputs, invoices up to one year old can be claimed, whereas, for capital goods, invoices up to five years old can be utilised for ITC claims.
5. Large ITC Claims: When the claimed ITC amount exceeds INR 2 lakhs, you must upload a Chartered Accountant certificate or Cost Accountant certificate to substantiate your claim. This is a mandatory requirement to verify substantial ITC claims.
Process for Filing GST Form ITC-01
Filing Form ITC-01 is a structured process that involves several important steps. Mentioned below is a comprehensive guide to help you navigate the procedure seamlessly:
Step 1: Login to GST Portal
Access the GST portal and log in to your GST account using your credentials.
Step 2: Access the ITC Forms
Go to the “Services” tab, and under “Returns,” select “ITC forms,” and then choose “ITC 01.”
You can opt to either “Prepare online” or “Prepare offline.”
Step 3: Select ITC Claim Type and Provide Details
Select the type of ITC claim based on the nature of your claim and the relevant clause and sub-clause of Section 18 under which the claim is being made.
The following fields need to be filled in:
- Select the type of goods (options: Inputs held in stock, Inputs contained in semi-finished goods or finished goods, Capital goods).
- Enter the GSTIN of the supplier.
- Provide the invoice number and its date (the invoice date should be prior to the grant of registration and not more than one year old for inputs, and five years for capital goods).
- Select the Unit Quantity Code.
- Describe the goods (Inputs).
- Enter the quantity.
- Enter the invoice value (adjust for the value of debit/credit notes issued against the relevant invoice).
- Input the ITC amount (CGST and SGST or IGST).
- For claims made under Sec. 18(1)(d), enter the date on which the goods became taxable.
- Click on the “Add” button to add more invoices or “Save” to proceed with submission.
Step 4: Preview and Submit
After entering all invoices, click “Preview,” then “Submit,” and finally, “Proceed.”
Note that no modifications can be made once the status turns to “submitted” or when you click on “Proceed.”
Step 5: Upload CA Certificate (If Applicable)
If your claim exceeds INR 2 lakhs, upload a Chartered Accountant certificate. Provide the following details:
a. Name of the firm.
b. Name of the CA certifying the form.
c. Membership number.
d. Upload the certificate in JPEG format (up to 500 KB).
e. Date of issuance of the certificate.
Step 6: File the Form Using DSC or EVC
- Once the form is successfully submitted, choose either “File using DSC” or “File using EVC.”
- Select the authorised signatory from the drop-down list to file using Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
- After filing, an Acknowledgment Reference Number (ARN) is generated and sent to you via SMS or email.
- The status of GST Form ITC-01 changes to “Filed.”
- The ITC claimed in GST Form ITC-01 becomes available in your electronic credit ledger.
Final Thoughts
GST Form ITC-01 is a critical document in the Goods and Services Tax system, facilitating the legitimate claiming of Input Tax Credits in specific scenarios. This form simplifies the process of transitioning from exempt to taxable supplies, opting out of the composition scheme, or claiming ITC on stocked inputs and capital goods. The detailed filing process, including selecting the appropriate ITC claim type, providing invoice details, and, if necessary, uploading a Chartered Accountant certificate, ensures transparency and compliance. Timely submission within 30 days of registration or migration is imperative, and once filed, the claimed ITC becomes accessible in the electronic credit ledger. Adhering to the guidelines and requirements of Form ITC-01 is crucial for businesses to effectively manage their ITC under the GST framework.
