Taxpayers newly registered under GST must file a declaration in Form GST ITC-01 for claiming an input tax credit if at the time of registration he is already holding stock of inputs, capital goods and finished goods at his place of business. A taxpayer can claim ITC on such goods only after obtaining registration, and for claiming ITC, filing of Form ITC-01 is mandatory.
This article covers the following topics:
1. Who can use the offline tool for ITC-01
The offline tool for GST ITC-01 is an Excel-based tool. It facilitates return preparation in offline mode. A newly registered taxpayer can use this offline tool to claim ITC on inputs held by him at the time of registration.
2. Prerequisites to use offline tool for ITC-01
A taxpayer is required to use:
Step 1: Visit the GST portal.
Step 2: Navigate to Downloads > Offline Tools > ITC-01 offline tool. Click on it.
Step 3: The ITC-01 offline download page will be displayed. Click on the download link.
The downloaded ITC-01 offline tool will be downloaded into the downloads folder of your device. Before unzipping the folder, ensure that the file is not corrupted by performing the below steps:
1. Match one of the values provided in the download file with the one mentioned under the downloads ITC-01 offline tool. If there is a perfect match, then your file is not corrupted. Otherwise, download it again.
2. Click on the link given under ‘Important!’.
3. The instruction box will be displayed – Open Windows PowerShell. You can find Windows PowerShell in the search box of your Windows PC.
4. Once Windows Powershell opens, you can write the command as mentioned below:
Get-FileHash <<FileURL>> Algorithm <<SHA256>>
e.g. Get-FileHash C:\Users\Test\Downloads\ITC_01_Offline_v1.0.zip -Algorithm SHA256.
- Windows 7 and above
- MS Excel 2007 and above
5. Match the hash value received with the one provided in the instructions box on GSTR_ITC01_Offline_Utility downloads page. If it is a perfect match, unzip the downloaded folder.
Step 4: Browse and select the location in which you want to save the downloaded file.
Step 5: Unzip the downloaded folder and extract the files from the downloaded zip folder.
Double click on the excel file to open. The excel workbook has three worksheets:
1. Help Instructions- This worksheet contains an introduction and guidelines.
2. Sec_18_1_A or Sec_18_1_B or Sec_18_1_C or Sec_18_1_D –This worksheet is populated based on the selection made in the field ‘Claim Made Under’ in the worksheet Import_Export_File.
- Import data from file: Import and edit the existing JSON file
- Generate file to upload: Generate JSON file as per details entered in sheets 3 & 4
4. Steps to prepare the ITC-01
Step 1: Go to the worksheet ‘Import_Export_file’.
- Enter the GSTIN in the GSTIN field
- Select the option ‘Yes’ or ‘No’ for the user registered as SEZ.
- Select the applicable claim section under the ‘Claims made under’ section.
Step 2: Go to the tab ‘Sec_18_1_A’. Enter the details in each on the fields of the worksheet.
After entering all the details, click on the ‘Validate Sheet’ button.
In case of successful validation: The sheet validation column shows a message – ‘This row is validated’.
In case of unsuccessful validation: A message will pop-up stating that errors have been observed. Click ‘OK’. The errors are highlighted in red under the ‘Sheet validation errors’ column. The column will show a message that ‘There is some error in this row. Please check the cell with red colour.’
Step 3: Correct the errors as mentioned in the yellow dialogue box.
After correcting all the mistakes, click on the ‘Validate Sheet’ button. In case of no errors, the below message will be displayed.
- Fill the ‘Date of grant of registration’ as per the claim section selected.
5. How to generate the JSON file
Step 1: Go to ‘Import_export_file’ tab and click on the ‘Generate JSON file to upload’ button.
Step 2: A message will be displayed that processing will take some time. Click ‘OK’. After some time, a confirmation message will pop up that the export of the JSON file is completed.
Browse and select the folder in which you want to save the JSON file. Enter the name and click ‘Save’.
Step 4: The JSON file will be created.
6. How to upload the generated JSON file
Step 1: Log in to the GST portal.
Step 2: Navigate to Services > Returns > ITC Forms
Step 3: The GST ITC forms page is displayed. Go to ITC-01 tile and click on the ‘Prepare offline’ button.
Step 4: Select the section under which the claim is being made from the drop-down list and click ‘Proceed’.
Step 5: Click on the ‘Choose file’ button on the offline upload page of GST ITC-01.
Step 6: Browse and select the generated JSON file ready for upload and click ‘Open’.
The JSON file will be validated and processed. On successful validation, the details entered will be populated in summary. In case of validation errors, the same will be displayed on the GST portal.
After upload and validation, proceed to submit and file Form GST ITC-01 with DSC or EVC as per steps mentioned here, after selecting the ‘Prepare offline’ option.
7. How to fix errors using the offline tool for ITC-01?
Download the error report
At the time of upload of the generated JSON file, if there are errors, the upload history table will show the status as ‘Processed with errors’.
Step 1: Click on the link – ‘Generate error report’. Once the report is generated, click on the download error report link to download the error file.
Step 2: The error report is downloaded in a zip file. Save the report on your system and then unzip the folder. The unzipped folder contains a JSON file.
Open the downloaded JSON error file
To open the downloaded error GST ITC-01 JSON file, follow the below steps:
Step 1: Go to the Import_export_file tab. Click on the ‘Open downloaded ITC-01 error JSON file’.
Step 2: A file dialogue box will open. Browse and select the saved error file. Click ‘Open’.
Step 3: A message will be displayed stating ‘Data successfully imported’. Click ‘OK’ to proceed.
Step 4: Go to the worksheet tabs and correct the errors as shown in the ‘GST Portal Validation Errors’ column.
Step 5: After making all the necessary corrections, click on the ‘Validate sheet’ button. (Validation process explained above.)
For the steps to file Form GST ITC-01 on the GST Portal, click here
, and follow the steps from step 4 onwards.
8. FAQs on the offline tool for ITC-01
1. What is GST ITC-01?
A: A registered taxpayer who is entitled to claim ITC under section 18(1) of the CGST Act, can claim ITC by filing Form GST ITC-01. The credit can be taken on inputs, inputs held in semi-finished/finished goods as below:
2. What is the precondition to filing form GST ITC-01?
A: (1) In case of new registration:
- A day immediately preceding the date on which his registration was granted for claim under clause (a) or clause (b) of sub-section (1) of section 18; once in the lifetime of a taxpayer.
- One day immediately preceding the date from which the person becomes liable to pay tax under section 9 for claim under clause (c) of sub-section (1) of section 18; once in a financial year.
- One day immediately preceding the date from which the supplies made by the registered taxpayer becomes taxable for claim under clause (d) of sub-section (1) of section 18, once in a month.
(2) In case of opting out from composition scheme and where the exempt supply of goods/services or both becomes taxable: A 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 scheme.
(3) In case of voluntary registration: A registered person has the details of ITC on inputs/capital goods as on the day before the date of grant of registration.
3. What are the features of Form GST ITC-01?
A: The key features are:
- The applicant has filed for registration within 30 days of becoming liable to pay GST and has been granted registration.
- The applicant has details of ITC on purchases on or after the appointed day but before registration and stock as on the day immediately preceding the day from which he becomes liable to pay GST.
4. Is the offline tool mobile compatible?
A: No. Currently, the GST ITC-01 offline tool is only available for use on desktops and laptops.
- It can be prepared offline.
- Most of the data entry and business validations are built-in, which minimises the chances of errors on upload to GST portal.