GST Compliance – ITC-01 Filing

Filing FORM GST ITC-01 (Claim of ITC under Section 18(1))

Edition: September 2025
Disclaimer: This manual is for compliance facilitation and education. It does not substitute statutory provisions, notifications, or circulars. Taxpayers should cross-check with the CGST Act/Rules and GSTN updates.

✍️ Preface

FORM GST ITC-01 is filed by taxpayers who become eligible to claim Input Tax Credit (ITC) under Section 18(1) of the CGST Act. It covers situations like fresh registration, opting out of composition, or when exempt supplies become taxable. The declaration enables transfer of eligible ITC on inputs, semi-finished/finished goods, and in specific cases, on capital goods.

GSTN provides both online and offline filing mechanisms. The offline utility is used for bulk invoice entry, while the portal allows direct online filing.

This manual consolidates the law, portal process, FAQs with legal basis, and a compliance checklist for practitioners.

📑 Table of Contents

1. The Law Governing ITC-01

2. Eligibility to File ITC-01

3. System Requirements

4. Step-by-Step Filing Process (How Do I)

5. FAQs (with Basis)

6. Compliance Checklist (Fillable Format)

⚖️ 1. The Law Governing ITC-01

• Section 18(1), CGST Act, 2017 – Eligibility to claim ITC in special circumstances:

  • (a) Fresh registration within 30 days of liability.

  • (b) Voluntary registration.

  • (c) Opting out of composition scheme.

  • (d) Exempt supplies becoming taxable.

• Rule 40, CGST Rules, 2017 – Prescribes FORM ITC-01 for such declarations.

• Certification: ITC > ₹2 lakh requires certificate by CA/CMA.

✅ 2. Eligibility to File ITC-01

You can file ITC-01 if:

• You applied for GST registration within 30 days of becoming liable.

• You took voluntary registration.

• You opted out of the composition scheme.

• Your exempt supplies have become taxable.

💻 3. System Requirements

• GST Portal Login ID & Password.

• Browser: Latest Chrome/Firefox/Edge.

• For offline tool: Windows 7+, MS Excel 2007+, 200 MB free disk space.

🛠️ 4. How Do I – Stepwise Filing Process

Step 1: Login & Navigate

• Go to www.gst.gov.in → Login.

• Navigate: Services > Returns > ITC Forms > ITC-01.

Step 2: Select Section & Enter Invoices

• Choose applicable clause of Section 18(1).

• Enter supplier GSTIN, invoice number, date (must be prior to grant of registration/eligibility).

• Enter goods description, UQC, quantity, value, ITC claimed (CGST, SGST, IGST, Cess).

Step 3: Save & Preview

• Click ADD → SAVE.

• Click PREVIEW to download draft PDF.

Step 4: Submit ITC-01

• Click SUBMIT → PROCEED.

• Status changes to “Submitted”.

Step 5: CA/CMA Certification (if ITC > ₹2 Lakh)

• Enter firm & certifier details.

• Upload certificate (JPEG ≤ 500 KB).

Step 6: File ITC-01

• Select Authorized Signatory.

• File with DSC/EVC.

• Success message displayed; ARN generated; email/SMS sent.

❓ 5. FAQs (with Basis)

Q1. What is ITC-01?
A declaration to claim ITC on stock/semi-finished/finished/capital goods in special circumstances. (Sec. 18(1), Rule 40)

Q2. On what goods ITC can be claimed?
Inputs, semi-finished/finished goods, and in certain cases capital goods (after 5% reduction per quarter). (Rule 40)

Q3. What is the timeline?
Within 30 days of eligibility (extendable). (Rule 40)

Q4. How many times can ITC-01 be filed?
Once under 18(1)(a)/(b); once per FY under 18(1)(c); monthly under 18(1)(d). (Rule 40)

Q5. How old can invoices be?
Inputs: up to 1 year old. Capital goods: up to 5 years old. (FAQ 4)

Q6. What happens after filing?
ITC is credited to ledger; ARN generated; intimation by email/SMS. (FAQ 6)

Q7. Is late fee applicable?
No specific late fee for ITC-01, but delay may result in loss of credit.

Q8. Is Nil ITC-01 allowed?
Yes, but must be filed directly on portal.

Q9. Can ITC-01 be revised?
No, once filed, cannot be amended.

Q10. What if ITC claimed > ₹2 lakh?
Requires CA/CMA certificate. (Rule 40)

✅ 6. Compliance Checklist (Fillable Format)