Taxpayers guide on claiming Input Tax Credit and ITC-01-Six FAQs

Taxpayers guide on claiming Input Tax Credit and ITC-01-Six FAQs

1. What is GST ITC-01?

Registered person who is entitled to claim credit of input tax under section 18 (1) is required to file a declaration in Form ‘GST ITC-01’. The credit may be availed for inputs held in stock, Inputs contained in semi-finished or finished goods held in stock or capital goods as the below

• One day immediately preceding the date on which his registration is granted for claim under clause (a) or clause (b) of sub-section (1) of section 18
• One day immediately preceding the date from which he becomes liable to pay tax under section (9) for claim under clause (c) of sub-section (1) of section 18
• One day immediately preceding the date from which the supplies made by registered taxpayer becomes taxable for claim under clause (c) of sub-section (1) of section 18

2. Input Tax Credit can be availed on which goods?

Input tax credit can be availed on following goods:

• Inputs held in stock
• Inputs contained in semi-finished or finished goods held in stock
• Capital goods (Only in case where composition dealer opting out of the composition scheme or where exempted goods become taxable goods)

3. When can I claim Input Tax Credit?

Registered person can claim credit of the inputs tax in respect of goods mentioned above within 30 days from the date of becoming eligible to avail ITC under subsection (1) of section 18 or within such further period as may be extended by the commissioner

• Claim under clause (a) or clause (b) of sub-section (1) of section 18 can be made only once
• Claim under clause (c) of sub-section (1) of section 18 can be made once in a financial year
• claim under clause (d) of sub-section (1) of section 18 can be made once in a month

4. By when do I need to claim Input Tax Credit?

The input tax credit can be claimed for invoice up to one year prior to the date of grant of approval /opting out of composition or exempt supplies becoming taxable and this one will be counted on or after appointed day. For capital goods the invoices can be dated 5 years prior to the date of grant of approval /opting out of composition or exempt supplies becoming taxable.

5. What are the pre-conditions to claim Input Tax Credit?

In case of new registration –

1. Applicant has filed application for registration within <30 days> of becoming liable to pay GST and has been granted registration (other than voluntary registration).

2. Registered person has the details of ITC for purchases on or after appointed day but prior to registration and stock as on the day immediately preceding the day with effect from which he becomes liable to pay GST (other than voluntary registration and composition tax).

In case of opting out from composition scheme and where exempt supply of goods or services or both becomes taxable:

1. Registered person has the details of ITC on inputs/capital goods as on the day immediately preceding the day in which he opts out from composition

In case of voluntary registration:

1. Registered person has the details of ITC on stock as on the day immediately preceding the date of grant of registration.

6. What will happen once the Form GST ITC-01 is filed?

Once the Form GST ITC-01 is successfully filed, the amount of ITC claimed would be posted to your credit ledger; ARN is generated and SMS and Email is sent to the taxpayer.