GST Form ITC-01 is a declaration form that is used to claim input tax credit.
Input tax credit means that a taxpayer can claim the amount that has been already paid as GST while making GST payment to the Government which was collected from the customers.
Entitlement of the Form
According to Section 18(1) of the CGST Act 2017, the registered person can claim input tax credit by filing declaration form GST ITC – 01. For inputs in stock as finished, semi-finished or capital goods, the credits can be availed as given below.
- For once in a lifetime of the taxpayer, the day before the date of registration, it can be claimed according to Clause (a) or Clause(b) of sub-section(1) of Section 18.
- During a financial year, the day before the day from when the taxpayer is liable to pay tax under Section 9, to claim according to Clause(c) of sub-section (1) of Section 18.
- Claims made according to Clause (d) of sub-section (1) of Section 18, all supplies claimed by a registered taxpayer from a day before the date is taxable.
Given below are the steps to declare and file a claim of ITC under Section 18 (1) (a) in Form ITC – 01.
Step 1: Login to the Portal
The taxpayer has to login to the official GST Portal.
Step 2: Enter the Details
The taxpayer has to enter the username and password.
Step 3: Click ITC Forms
From the ‘Services’ tab, the taxpayer has to select ‘Returns’ and then click on ‘ITC Forms’. The GST ITC Forms page is displayed on the screen.
Step 4: Click Prepare Online
Under GST ITC – 01, click ‘Prepare Online’ button if the taxpayer desires to provide a statement by making entries on the GST Portal.
Click here to proceed with Offline Procedure
Step 5: Select the Section
The taxpayer has to select the appropriate section from the ‘Claim Made Under’ drop-down list.
Section 18(1)(a) is applicable for those taxpayers who have applied for registration within 30 days of becoming liable and this can be filed only once.
Step 6: Enter the GSTIN
In the GSTIN field, the taxpayer has to enter the GSTIN of the supplier who has supplied the goods or services.
Step 7: Enter the Invoice Number
In the ‘Invoice Number’ field, the taxpayer has to enter the invoice number.
Step 8: Enter Invoice Date
In the ‘Invoice Date’ field, the taxpayer has to select the date when the invoice was generated using the calendar.
The Invoice date should be prior to the grant of approval.
Step 9: Select Goods Type
The taxpayer has to select the ‘Goods Type’ from the drop-down list.
Step 10: Enter the Description of Inputs
In the ‘Description of Inputs’, the taxpayer has to enter the description of inputs that are in stock, the inputs contained in semi-furnished or finished goods that are in stock.
Step 11: Select Unit Quantity Code
The taxpayer has to select the ‘Unit Quantity Code (UQC) from the drop-down list.
Step 12: Enter the Quantity
In the ‘Quantity’ field, the taxpayer has to enter the number of inputs.
Step 13: Enter the Invoice Value
In the ‘Value’ (as adjusted by debit note/ credit note) field, the taxpayer has to enter the invoice value.
Step 14: Enter ITC Amount
The taxpayer has to enter the amount of ITC claimed as the Central Tax, State/UT Tax, Integrated tax and Cess.
CGST and SGST amount should be the same and the total sum of CGST and SGST should not exceed the invoice value (IGST). In the case of an Inter-State purchase, IGST amount should not exceed the Invoice Value.
Step 15: Click Add
The taxpayer has to click the ‘Add’ button.
Step 16: Click Save
Once all the details are entered, the taxpayer has to click the ‘Save’ button.
The taxpayer can click the Edit/ Delete icon to edit or delete the Invoice.
Step 17: Previewing the Form
The taxpayer has to click the ‘Preview’ button to preview the draft for GST ITC – 01.
The draft is displayed in the PDF Format.
Step 18: Click Submit
The taxpayer has to click the ‘Submit’ button to submit the form.
Step 19: Click Proceed
The taxpayer has to click the ‘Proceed’ button. After submitting the data, the page is frozen and no changes can be made.
Step 20: Refresh the Page
The taxpayer has to refresh the page and the status of GST ITC-01 changes to Submitted.
Updating Certifying Chartered Accountant’s or Cost Accountant’s Details
Once the form is submitted, and if the ITC claimed is more than Rs. 2 Lakh, then the taxpayer has to update the Chartered Accountant/ Cost Accountant details.
Given below are the steps to upload the Chartered Accountant/ Cost Accountant certificate on the GST Portal.
Step 1: Enter the Name
The taxpayer has to enter the name of the firm that issued the certificate in the ‘Name of the Firm Issuing Certificate’ field.
Step 2: Enter the Chartered Accountant or Cost Accountant
The taxpayer has to enter the name of the Chartered Accountant or Cost Accountant in the ‘Name of the Certifying Chartered Accountant/ Cost Accountant’ field.
Step 3: Enter the Membership Number
The taxpayer has to enter the membership number of the Chartered Accountant or Cost Accountant in the ‘Membership Number’ field.
Step 4: Date of Issuance of Certificate
The taxpayer has to select the ‘Date of Issuance of Certificate’ using the calendar.
Step 5: Upload the Certificate
The taxpayer has to upload the ‘Chartered Accountant or Cost Accountant’ certificate in the JPEG format. The file should not be more than 500 KB.
Step 6: Save CA Details
The taxpayer has to click ‘Save CS Details’ to save all the details.
Step 7: Select the Checkbox
The taxpayer has to select the checkbox for declaration.
Step 8: Select the Authorized Signatory
In the ‘Authorized Signatory’ drop-down list, the taxpayer has to select the authorized signatory. This option enables two buttons ‘File ITC with DSC’ or ‘File ITC with DVC’.
File With DSC
The taxpayer has to click the ‘Proceed’ button and then has to select the certificate and click the ‘Sign’ button.
File with EVC
The taxpayer has to enter the OTP that is sent on Email and to the registered mobile number of the Authorized Signatory and then click ‘Verify’ button.
Step 9: ARN Generation
The success message is displayed on the screen. ARN is generated and it is sent to the taxpayer via SMS and email. When the page is refreshed, the status of GST ITC – 01 is changed to ‘Filed’.
Benefits of Filing GST ITC – 01
A taxpayer can avail the following benefits by filing GST ITC – 01.
- The form enables a newly registered taxpayer to take credit of input tax for inputs that are held in stock and inputs that are contained in a semi-finished or finished good that is in stock on the day immediately after the date from which he/she becomes liable to pay tax under GST provisions.
- The form benefits the taxpayers who have been taken registration in a voluntary basis, to take credit of input for inputs that are held in stock and inputs maintained as semi-finished or finished goods that are held in stock on the day immediately after the date of grant of registration.
- The form enables those taxpayers opting out of composition scheme and opting to pay tax as a normal taxpayer and to take credit of input tax for inputs that are held in stock, inputs maintained in semi-finished or finished goods that are held in stock or on capital goods on the day immediately after the date on which he becomes liable to pay tax under Section 9.
- The form entitles such registered people whose supply of goods and services to become taxable from exempt to take credit of input tax for inputs held in stock and inputs maintained in semi-finished or finished goods that are held in stock relatable to such exempt supply and on capital goods that are exclusively used for such exempted supply on the day immediately preceding the date from which such supply become taxable.