ITC 01 Form – Claim ITC on New GST Registration
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Regular businesses would have inputs, capital goods, and finished products stocked at their location on the day they registered for GST. Before acquiring GST registration, the buyer cannot claim the GST paid on such purchases as an Input Tax Credit (ITC). After receiving GST registration, taxpayers can claim an input tax credit for GST paid on such inputs, capital goods, and inputs in completed products sitting in stock as of the effective date of registration.
To claim the input tax credit, taxpayers registered under GST must submit a declaration using Form GST – ITC 01 on the GST system. The only way to get the ITC for that stock is to fill out this Form.
Conditions for filing ITC-01
- If a request for GST registration is submitted within 30 days of the taxpayer becoming subject to GST payment obligations. To quote [sub-section 18(1)(a)]
- At the time any individual chooses to register voluntarily [Section 18(1)(b)]
- When a taxpayer decides not to participate in the composition scheme but keeps their normal taxpayer status. Specifically, [Section 18(1)(c)]
- When a formerly tax-exempt supply of goods or services becomes taxable. Pursuant to [Section 18(1)(d)]
- Note that if Form ITC – 01 is not filed, the individual will not be eligible to receive ITC.
Forms of Input Tax Credit that Can Be Reclaimed
- Stock inputs are owned as of the input tax credit cutoff date.
- Credit for input taxes paid on materials used in semi-finished products as of the valuation date.
- Credit for input taxes paid on materials used in final products as of the assessment date.
- Credit for taxes paid before the deadline on equipment and other fixed assets.
Exempted supply becomes taxable only when a composition dealer opts out of the composition system.
Schedules and deadlines for submitting an ITC claim
To be eligible to claim ITC, a person must complete Form ITC – 01 by 30 days after becoming eligible (within 30 days after the award of registration or opting out of the composition scheme).
| Case | Cut-off date | No. Of times ITC can be claimed by filing ITC 01 |
|---|---|---|
| If an application for GST registration is filed within 30 days of the taxpayer’s tax liability accruing [Section 18(1)(a)] | Date- immediately before the date when he becomes obligated to pay tax. | Once |
| [Section 18(1)(b)] applies if any individual chooses to participate in voluntary registration. | Immediately before the Date of Registration Grant | Once |
| If a taxpayer decides to forego the composition scheme but keeps their normal taxpayer registration and continues to pay their taxes as usual [Section 18(1)(c)] | As of the previous day, if he chooses to make his tax traditionally. | Yearly |
| [Section 18(1)(d)] When an exempt supply of goods or services becomes a taxable supply. | Preceding the date on which the supply becomes taxable | Monthly |
Considerations for submitting Form ITC 01
- Learn which tax credits may be claimed as inputs. For instance, you can’t use Form ITC 01 to apply for the ITC related to services. Any time an exempted supply becomes taxable and the composition dealer decides to opt out of the composition system, the dealer can claim an ITC on capital goods.
- Regarding invoices, it is expected that information about ITC on purchases as of the cutoff date will be accessible.
- The ITC 01 form must be submitted by thirty days from the registration date or migration to a regular scheme.
- In the case of inputs, invoices up to one year old may be claimed, while invoices up to five years old can be claimed.
- If the ITC claim is more than INR 2 lakhs, a Chartered Accountant certificate or Cost Accountant certificate must be uploaded.
Form ITC-01 filing procedure broken down step by step.
Step-1: Login to the GST portal.
Step-2: ITC 01 may be found by selecting the Services menu, Returns, and ITC forms.
Click the option “Prepare online” or “Prepare offline.”
Step-3:Determine the ITC Claim Category and Be Specific In the ‘Claim made under’ drop-down menu, please indicate which clause and subclause of Section 18 your claim fall under. Each of the alternatives, as mentioned earlier, uses the same fields.
Please follow the steps below to provide the appropriate invoice information:
- Choose the product category. Choose from (i) raw materials, (ii) materials used in production, or (iii) fixed assets. Therefore, taxpayers who file Form ITC – 01 must keep a thorough stock register documenting the acquisition and use of inputs.
- Supplier GST Identification Number (GTIN)
- Type in the Invoice Number and the Due Date (This date cannot be more than one year in the case of inputs and five years in the case of capital goods previous to the approval date for registration.)
- Code for Unit Quantity
- Merchandise description – components
- Enter Quantity
- The cost must be entered. (The stated amount of the invoice should reflect the value of any debit or credit notes that have been issued concerning the invoice in question.)
- The amount of ITC must be entered (CGST and SGST or IGST)
Note: Claims under Section 18(1)(d) also need to enter the date on which the items became taxable. To add additional invoices, choose the ‘Add’ button; to submit, select the ‘Save’ button.
Step-4: After you’ve entered all of the invoice information, choose Preview > Submit > Proceed
Please be aware that once the status changes to “submitted” or you click “Proceed,” no changes may be made.
Step 5: Put your CA certificate here if you need to use one. For claims above INR 2 lakhs, an up-to-date certificate and Chartered Accountant or Cost Accountant information are required. Please fill in the following information:
- The firm’s name
- Certifying CA’s name
- Membership number
- The certificate should be uploaded in JPEG format that should not exceed 500 KB
- Certificate issuance date
Step 6: Remember to use DSC or EVCO while filling out the Form. After the Form has been filed successfully, the user may choose an authorized signatory from a drop-down menu and then click the “File using DSC” or “File using EVC ” button to complete the filing process using a digital signature or electronic verification code. After a return is submitted, the taxpayer will get an ARN via SMS or email. GST ITC 01 is now in the ‘Filed’ state. After submitting Form ITC 01, the ITC claims may be accessed in the credit ledger.
