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ITC 03 is a form that is filed in special circumstances when input tax credit that has been availed has to be reversed. If person who opted for Composition scheme this year or has any of the item on which ITC was availed become exempt even before you could utilize, they use ITC-03 to reverse the ITC.
ITC 03 form is filed by a taxpayer who has to pay an amount equal to the ITC through electronic credit or cash ledger. Payments may be on the account of ITC on:
ITC-03 can be applied in two possible situations:
To file ITC 03, the following conditions have to be satisfied:
Registered person can file ‘Form GST ITC-03’ only once in a financial year for opting for composition scheme. For reversal/payment of tax in case of exemption of supplies it can be filed multiple times, as and when notifications exempting such supplies are issued by Government.
Is there a Challan required in this process?
Yes. If available cash balance in Electronic Cash Ledger is less than the amount required to offset the liabilities; additional cash is required for paying the liabilities. The individual need to create the challan for that additional cash required, to offset the liabilities.
You can file Form GST ITC-03 using DSC, or EVC.
Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. A digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally. In India, DSC are issued by authorized Certifying Authorities.
The Electronic Verification Code (EVC) authenticates the identity of the user at the GST Portal by generating an OTP. The OTP is sent to the mobile phone number of the registered mobile phone of Authorized Signatory filled in part A of the Registration Application.
After Form GST ITC-03 is filed:
Please find Your GST-ITC-03 Form here:FORM_GST_ITC_03