How to File GST ITC-01 Form Online?

Most of the businesses have stock in-hand, capital goods, and finished items at the time of registering for GST. And only after acquiring the GST registration can a business claim ITC on such goods. But the question arises using which form a taxpayer can claim ITC. So, the answer to this question is GST ITC-01 form and in this blog, we will know how to file GST ITC-01 form online.

What is GST ITC-01 Form?

GST ITC-01 is a declaration form that needs to be furnished by newly registered taxpayers to claim the input tax credit on the stock held before obtaining registration.

Different Types of Goods Against Which ITC is Allowed After Filing GST ITC-01

Taxpayers who are eligible for the ITC can claim it for the following items:

1. Inputs that were held in stock
2. Inputs contained in semi-finished goods
3. Inputs contained in finished goods
4. Capital goods

When to File GST ITC-01 Form?

In the following situations, the GST ITC-01 declaration form must be filed by a taxpayer to claim ITC:

1. When a GST registration application is submitted within30 days from the date on which taxpayer is liable to obtain GST registration. [Section 18(1)(a)]
2. When a person chooses to register voluntarily. [Section 18(1)(b)]
3. When a person opts out of the composition scheme either voluntarily or by virtue of law but liable to pay GST u/s 9. [Section 18(1)(c)]
4. When exempted goods or/and services become taxable. [Section 18(1)(d)]

Cut-Off Date to Claim ITC using ITC-01 Form

Case	Cut-off Date	No. of Times ITC can be claimed
Section 18(1)(a)	The day before he/she becomes liable to pay tax.	Once
Section 18(1)(b)	The day immediately preceding the day when GST registration was granted.	Once
Section 18(1)(c)	The day immediately precedes when day he/she opts to pay GST as a normal taxable person.  Further credit for capital goods shall be reduced by such percentage as mentioned in the rules.	Once a year
Section 18(1)(d)	The day immediately preceding the day on which such goods or/and services become taxable.  Further credit for capital goods shall be reduced by such percentage as mentioned in the rules.	Once a month

For example, on 1 October 2020, ABC Foods decided to opt out of the composition scheme and chose to remain a normal taxable person. So, in this case, ABC foods can claim ITC of stock in held, semi –finished/finished goods, or capital goods before 30th September 2020.

Filing Process of GST ITC-01

Step 1: Go to the GST portal and log in.

Step 2: Select ‘ITC forms > ITC 01′ under ‘Returns’ after clicking on ‘Services’.

Step 3: Select either ‘Prepare online’ or ‘Prepare offline,’ as appropriate

Step 4: Select the type of ITC claim you want to make.

In the ‘Claim made under’ tab, fill in the requested information and choose the appropriate clause and sub-clause of section 18 under which the claim is made.

Step 5: Enter the supplier’s GSTIN, invoice number, and date.

Step 6: Select the types of goods.

1. Inputs in hand
2. Input found in semi-finished or finished goods
3. Capital goods

Step 7: Choose unit quantity code (UQC).

Step 8: Enter invoice value.

Step 9: Enter ITC the amount.

Step 10: To continue adding invoices, click the ‘Add’ button; to submit, click the ‘Save’ button.

Step 11: Preview the filled-in information before clicking Submit.

Step 12. Once the form is submitted, click on the proceed button.

Uploading Certificate Issued by CA

For any ITC claims over INR 2,00,000, the certificate is issued by the CA or CWA. To do so, the following information is required:

1. Name of the CA certifying the form
2. CA’s Membership Number
3. Name of the CA firm
4. Date of certificate issuance
5. Then file the GST ITC-01 form either by using Electronic Verification Code (EVC) or Digital Signature Certificate (DSC) (EVC).
6. Once file ARN is generated which is sent directly to the registered mail ID or phone number.

Note: The certificate must be in JPEG format and the file size (to be submitted) must not exceed 500KB and must be in JPEG format.

Points to Note

1. Form ITC-01 cannot be used to claim an ITC for services.
2. If the composition dealer has opted out of the composition system or if an exempted supply becomes taxable, ITC on capital goods can be claimed using the ITC-01 form.
3. Invoice wise ITC details must be entered (as on the cut-off date).
4. In the case of inputs (goods), ITC can be claimed on invoices up to 1 year, and for capital goods, up to 5 years.
5. If the ITC claim exceeds INR 2,00,000 the taxpayer must provide a certificate from a Chartered Accountant or Cost Accountant with this form.