Form GST ITC 01 – Declaration for Claiming ITC

Last Update Date : September 18, 2018

filing itc 01

GST Form ITC-01 is a declaration form that is used for claiming input tax credit. Input tax credit means that you can claim the amount that you have already paid on the inputs while making the tax payment on output.

What is GST ITC-01?

As per section 18(1) of the CGST Act 2017, a registered person is entitled to claim input tax credit by filing the declaration form GST ITC 01. For inputs in stock in finished, semi-finished or capital goods, credit can be availed as mentioned:

  1. For once in the lifetime of the taxpayer, the day before the date of registration, he can claim ITC under clause (a) or clause(b) of sub-section(1) of section 18
  2. During the financial year, the day before the day from when he is liable to pay tax under section 9, to claim as per clause(c) of sub-section (1) of section 18
  3. Claims, as per clause (d) of sub-section(1) of section 18, supplies made by a registered taxpayer from one day before the date is liable for tax.

Which Goods Can Input Tax Credit be Availed On?

A taxpayer can claim ITC for:

  • In stock inputs
  • Semi-finished or finished input stock
  • Capital goods (Only in the case where composition dealer opting out of the composition scheme or where exempted goods become taxable goods)

When Can ITC Be Claimed?

As per section 18 of sub-section (1), a registered person can claim ITC on eligible inputs within 30 days of becoming eligible to claim input tax credit or within the time period granted by the commissioner. Claims can only be made under clause (a) or clause (b) of sub-section (1) of section (18).

Once in a financial year, a taxpayer can claim under clause (c) of sub-section (1) of section 18 and once in a month claims can be made under clause (d) of sub-section (1) of section 18.

Date by Which Input Tax Credit Can be Claimed?

A taxpayer who has been received approval or opted out of composition scheme can claim on invoices up to one year prior. The same can also claim on exempt supplies which have become taxable up to one year prior from the date of receiving approval or opting out. The time frame is 5 years for claiming ITC on invoices for capital goods.

Conditions for Claiming Input Tax Credit

For taxpayers with new registrations, the following two conditions apply:

  1. Within the time frame of becoming liable to pay GST, the applicant has applied and has been granted registration, except for those under voluntary registration
  2. Other than composition scheme and voluntary registration taxpayers, a taxpayer having the details on purchases on or after the appointed day but before registration can claim ITC.

In situations where the taxpayer has opted out from composition scheme, or exempt supply of goods/services become taxable, input tax credit can be claimed on the day following opting out from compositions scheme.

For the taxpayer who has opted for voluntary registration, ITC can be claimed in inputs and capital goods on the day following the approval of registration.

How to File GST ITC 01?

The filing procedure for GST ITC 01 is simple if you do it properly.

Claiming Input Tax Credit under sub-section (1) of section 18

1. Login to the GST portal and click on “ITC Forms”

 

 

2. For Form ITC-01, select “Prepare Online” option

 

 

3. From the “Claim Made Under” drop down list, select the relevant choice

 

For Claims u/s 18(1)(a) the following steps are applicable:

 

  • Select “Add Details”
  • Select the type of goods from the drop-down menu
  • Enter the GSTIN of the supplier
  • Add the invoice number
  • Enter the Invoice Date, using the calendar provided (NOTE: date of invoice should be before grant of approval)
  • Enter details of all inputs
  • Select the “Unit Quantity Code” from the drop-down menu
  • Enter date for quantity of inputs
  • Enter invoice value
  • Enter amount of ITC being claimed (Note: CGST and SGST should equal the invoice value, and both should be same. IGST should also not exceed value of invoice)
  • After click “Add to Table”, select “Save” and proceed to add the next invoice (20 invoices can be added)

For Claims u/s 18(1)(d) (filing done multiple times) the following steps are applicable:

 

  • From the calendar, select the date on which goods/services became taxable
  • Select “Add Details”
  • From the drop-down menu, select “Goods Type”
  • Enter the GSTIN of supplier of goods or services in the GSTIN field
  • Enter the invoice number in the Invoice Number field
  • Describe the inputs held in stock, inputs contained in semi-furnished or finished goods held in stock in the Description of Inputs field
  • From the drop-down menu, select the Unit Quantity Code (UQC)
  • Enter the quantity of inputs in the Quantity field
  • Enter the value of the invoice in the Invoice Value field
  • Enter the ITC amount claimed as SGST/UTGST Tax, Integrated Tax, Central Tax and Cess in appropriation
  • Click on the “Add to Table” button
  • The details will be added. Click the “Save” button

 

Note: You can add maximum 20 invoices at a single time. Save the previous invoice before adding the next invoice.

Submit GST ITC-01 to Confirm Data

Follow the steps mentioned to freeze the data entered in GST ITC 01

  1. Select “Submit”
  2. “Proceed” to confirm and freeze the entered data in all the fields.
  3. After refreshing the page, the status changes to GST ITC-01 “Submitted”

Filing GST ITC-01 with DSC/ EVC

Once you are ready to submit your ITC 01, you can file using DSC/EVC by following the below-mentioned steps:

  1. Choose the checkbox
  2. Select the authorised signatory from the drop-down list, which will enable the options to file using DSC or EVC

To File with DSC

  • Click proceed to select the certificate
  • Click on “Sign”

 

To File with EVC

  • The authorised signatory will receive the OTP via mobile number or email, which must be entered
  • Click “Verify”, which will prompt a successful message to be displayed along with ARN
  • The status will now display “Filed”

Latest Update for Certifying Chartered Accountant or Cost Accountant Details

For ITC claims greater than Rs 2 lakh, the details of the Chartered Accountant (CA) need to be updated on the GST portal, along with the CA certificate. Details to be entered are as follows:

  1. Name of the Firm issuing certificate
  2. Name of the Chartered/Cost Accountant
  3. Membership number of Chartered Accountant
  4. Upload CA or Cost Accountant certificate (max 500kb) and enter date certificate was issued.

How earlyGST by H&R Block Can Help You?

earlyGST by H&R Block provides reconciliation service where the corporates can pre-check their returns to avoid mismatches before filing. Our dedicated team can help you handle mismatches by following up with your vendors on actionables.

  • Share: