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.
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:
A taxpayer can claim ITC for:
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.
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.
For taxpayers with new registrations, the following two conditions apply:
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.
The filing procedure for GST ITC 01 is simple if you do it properly.
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:
For Claims u/s 18(1)(d) (filing done multiple times) the following steps are applicable:
Note: You can add maximum 20 invoices at a single time. Save the previous invoice before adding the next invoice.
Follow the steps mentioned to freeze the data entered in GST ITC 01
Once you are ready to submit your ITC 01, you can file using DSC/EVC by following the below-mentioned steps:
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:
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