GST Compliance – ITC-03 Offline Utility

Filing FORM GST ITC-03 using the Offline Utility

Edition: September 2025
Disclaimer: This manual is prepared for educational and compliance facilitation purposes. It does not substitute the provisions of law, notifications, or circulars issued by the Government. Readers are advised to refer to the original statutory provisions wherever required.

✍️ Preface

FORM GST ITC-03 is filed when a registered taxpayer opts for the composition scheme or when the supply of goods or services becomes wholly exempt. It requires reversal of ITC on stock, semi-finished and finished goods, and capital goods held on the day immediately preceding the date of such change.

The ITC-03 Offline Utility enables taxpayers to prepare details offline, validate them, and generate JSON for upload to the GST Portal. This manual consolidates the law, stepwise offline process, FAQs with statutory basis, and a compliance checklist.

📑 Table of Contents

1. The Law Governing ITC-03

2. Purpose of the Offline Utility

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-03

• Section 18(4), CGST Act, 2017 – Reversal of credit when switching to composition or when supplies become exempt.

• Rule 44, CGST Rules, 2017 – Prescribes filing of ITC-03.

• Timeline:

  • If CMP-02 filed on/before 31 March 2018 → within 180 days.

  • If CMP-02 filed after 31 March 2018 → within 60 days from FY start.

• Certification: Where invoices not available, value based on market price certified by CA/CMA.

📝 2. Purpose of the Offline Utility

• To enable offline preparation of ITC-03 return.

• Supports entry of invoices available and invoices not available.

• Inbuilt validations reduce portal rejections.

• Allows correction through Error JSON re-upload.

💻 3. System Requirements

• OS: Windows 7 & above.

• Software: MS Excel 2007+ or equivalent.

• Disk Space: 200 MB free.

• Internet: Required only for JSON upload.

• Not Mobile Compatible.

🛠️ 4. How Do I – Stepwise Filing Process

Step 1: Download Tool

• From GST Portal → Downloads → Offline Tools → ITC-03 Offline Tool.

Step 2: Open Utility

• Extract .zip → Open Excel file → Enable Editing & Content.

• Four worksheets: Instruction, Home, Invoice_Available, Invoice_Not_Available.

Step 3: Enter Basic Details

• GSTIN, section of filing, SEZ (Y/N), ARN & date (if opting composition), or exemption date.

Step 4: Enter Invoice Data

• Invoice_Available: Enter GSTIN, invoice details, stock/ITC.

• Invoice_Not_Available: Enter stock values with market price (certified by CA/CMA).

Step 5: Validate Sheets

• Click Validate Sheet → errors shown in red → correct and re-validate.

Step 6: Generate JSON File

• Home tab → Get Summary → Generate JSON → Save locally.

Step 7: Upload JSON on GST Portal

• Portal → Services > Returns > ITC Forms → ITC-03 tile → Prepare Offline → Upload JSON.

• Multiple uploads possible; latest replaces earlier data.

Step 8: Correct Errors

• If processed with error → download Error JSON → import → correct → regenerate → re-upload.

Step 9: Submit & File

• Initiate filing → Enter CA/CMA certification details → Upload certificate → Save.

• Pay liability → File return with DSC/EVC → ARN generated.

❓ 5. FAQs (with Basis)

Q1. Who must file ITC-03?
Taxpayers opting composition or whose supplies become exempt. (Sec. 18(4), Rule 44)

Q2. What details are furnished?
Stock of inputs, semi-finished, finished goods, capital goods (invoice-wise/market price). (Manual)

Q3. What if invoices not available?
Value based on market price certified by CA/CMA. (Rule 44)

Q4. Filing timelines?
180 days (CMP-02 before 31.03.2018); 60 days (CMP-02 after 31.03.2018). (Rule 44)

Q5. Where is ITC-03 filed?
Portal → Services > Returns > ITC Forms → ITC-03. (Portal Flow)

Q6. What is “Generate JSON File”?
Creates upload file for GST Portal. (Manual)

Q7. What is Error JSON?
Contains failed entries, used for correction. (Manual)

Q8. Can JSON be re-uploaded?
Yes, new entries replace earlier ones. (Manual)

Q9. What details must be certified by CA/CMA?
Stock values where invoices are not available. (Rule 44)

Q10. What validations are offline?
GSTIN, numeric fields, dropdowns. (Manual)

Q11. What happens post-save in ITC-03?
“Offset liability” option enabled for payment. (Manual)

Q12. Can ISDs/NRTP/TDS deductors file ITC-03?
No, only taxpayers under Sec. 18(4). (Sec. 18, Rule 44)

Q13. What is the certificate requirement?
CA/CMA certificate mandatory if invoices missing. (Rule 44)

Q14. Can Nil ITC-03 be filed offline?
No, must be filed directly on portal. (Manual)

Q15. What is ARN?
Acknowledgement Reference Number generated after filing. (Portal)

✅ 6. Compliance Checklist (Fillable Format)