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.
Exempted supply becomes taxable only when a composition dealer opts out of the composition system.
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|
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:
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:
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.