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GST Input Tax Credit – GST ITC01 – Format, Eligibility & Rule

Introductions

For all the newly registered members of the GST counter, the ITC claim cannot be made On the date of obtaining the GST registration, persons carrying on regular business would be holding stock of inputs, capital goods and finished goods at their place of business.

The GST paid on such goods purchased cannot be claimed as Input Tax Credit (ITC) before the date of obtaining GST registration. Only after obtaining the GST registration, taxpayers can avail input tax credit of GST paid on such inputs, capital goods and inputs in finished goods lying in stocks, from the effective date of obtaining registration.

What is GST – ITC 01?

Form GST – ITC 01 is a declaration form filed on GST portal for claiming the input tax credit by taxpayers newly registered under GST. Filing of this form is mandatory to claim ITC on such stock.

When is the ITC-01 must be filed?

  • When an application for GST registration is made within 30 days of becoming liable to pay GST. [Section 18(1)(a)]
  • When any person opts for voluntary registration. [Section 18(1)(b)]
  • When any person opts out of composition scheme but continues to be registered as a regular taxpayer. [Section 18(1)(c)]
  • When an exempt supply of goods/services becomes taxable supply. [Section 18(1)(d)]
  • It should be noted that ITC cannot be claimed if the person fails to file Form ITC – 01.

Types of input tax credit allowed

  • Input tax credit in respect of inputs held in stock on the cut-off date.
  • Input tax credit in respect of inputs contained in semi-finished goods on the cut-off date.
  • Input tax credit in respect of inputs contained in finished goods on the cut-off date.
  • Input tax credit in respect of capital goods on the cut-off date.

What is the due date for claiming?

Form ITC – 01 is required to be filed within 30 days of the person become eligible to claim ITC i.e. 30 days from grant of registration or opting out of composition scheme.

  • If the GST registration is made within 30 days of becoming liable to pay tax – The tax liability starts immediately.
  • If the registrations are made voluntarily – The due date is the day following the date of registration.
  • If the individual opts out of composition scheme but continues to be registered and pay tax as a regular taxpayer – The due date is the date following the day of choice.
  • When an exempt supply of becomes taxable – Due date preceding the day when the supply becomes a taxable

Points to remember while filing ITC 01

  • Know what input tax credits can be claimed. For example, the ITC in respect of services cannot be claimed in Form ITC 01.
  • ITC in respect of capital goods can only be claimed in case composition dealer opts out of composition scheme and where exempted supply becomes taxable supply.
  • Invoice wise Details of ITC on purchases as on the cut-off date should be available.
  • Form ITC 01 should be filed within 30 days of the date of registration/migration to a regular scheme.
  • Invoices up to one-year-old can be claimed in case of inputs and up to five years in case of capital goods.
  • If the ITC claim is more than INR 2 lakhs, Chartered Accountant certificate or Cost Accountant certificate must be uploaded.

Find the Form Link here:FORM_GST_ITC_01