Form ITC-03 is filed by taxpayers who wish to do the reversal of Input Tax Credit for which ITC has been availed.

It can be either filed by taxpayers who have opted for composition scheme or by a dealer whose taxable goods and services become exempt.

This form is filed by the taxpayers to pay an amount which is equal to the credit availed through electronic credit or cash ledger.

Payments are made on account of ITC on:

• Inputs held in stock
• Inputs contained in semi-finished goods/finished goods held in stock
• Capital goods or plant and machinery

Here are the Prerequisites to file form ITC 03:

• In order to use the form, the taxpayer should have availed the ITC earlier so as to reverse it.
• The taxpayer should have opted for the composition scheme in CMP-02 and informed about the same to the department at the beginning of the year.
• The taxpayer must have a digital signature certificate (DSC) or an electronic verification code (EVC)
• An official certificate from a Chartered Accountant is required certifying the value of goods if the invoice details are not available with the taxpayer
• The data entry can be made offline and offline utility can be downloaded from the GST portal.

What are the steps to file ITC 03 on the GST Portal?

Listing down all the steps here:

1. Login on the GST Portal and Navigate to Form GST ITC-03 page
2. Select option whether to prepare return “Online” or “Offline”
3. Go to > Section and choose the appropriate option:
   • Section 18.4(a) – It is applicable for taxpayers who are opting in for composition scheme. It can be filed only once in a FY.
   • Section 18.4(b) – It is applicable for taxpayers whose goods or services/ both supplied by them become exempt. It can be filed multiple times as and when the notification for exemption will get issued.
4. Select one of the two options here – (1) Goods details with invoices and (2) Goods details without invoices
5. Upload Chartered Accountant’s Certificate or update details/Cost Accountant’s details
6. Enter Payment Details in table 6 (Amount of ITC payable and paid tile)
7. View Debit entries in Cash/Credit Ledger for tax payment
8. File Form GST ITC-03 with DSC/ EVC
   • Download Return filed

Step 1:

Go to www.gst.gov.in and login into your account. Then navigate to the GST ITC-03 Page. You will find it in the ‘services tab’.

GST Portal > Login > Service Tab > ITC Forms > ITC 03

As the GST ITC Forms page shows up, you need to click on the PREPARE ONLINE or Prepare Offline button on the GST ITC-03 tile.

In case if you select Prepare offline then you need to process your data through Offline utility. Option to download offline utility is available on GST homepage.

In case if you select Prepare Online then enter data online and file as explained below

Step 2:

Go to > Section and choose the appropriate option. After your selection, click on ‘Proceed’.

• Section 18 – 4(a) – It is applicable for taxpayers who are opting in for composition scheme. It can be filed only once in FY.
• Section 18 – 4(b) – It is applicable for taxpayers whose goods or services/ both supplied by them become exempt. It can be filed multiple times as and when the notification for exemption will get issued.

Step 3:

The Form GST ITC-03 page is shown. Now, click on appropriate tile names to know to fill in the details.

There are two options here – (1) Goods details with invoices and (2) Goods details without invoices

1. ITC 03 for Goods details with invoices:

Select the Supplier’s Registration, Registered Under (GST/CX/VAT)

Adding GST Invoice in ITC 03 for goods with invoices:

i. Choose the date from which exemption is effective with the help of the calendar.

Note: To change the date of exemption please close the current form using ‘CLOSE’ button and open a new form. Closing of the current form will automatically delete all the saved data.

ii. In the GSTIN field, enter the GSTIN number of the supplier.

iii. In the Invoice/Bill of an entry Number field, enter the invoice or bill of entry number.

iv. Choose the Invoice/Bill of entry Date using the calendar.

v. Now, you need to enter the details of the item.

vi. Click on the ADD button.

vii. Click on the SAVE button.

viii. A success message will be displayed and the invoice is added. You can click edit/delete button to edit/ delete the invoices (under Actions). Click on the BACK button.

Adding CX/VAT invoice in ITC 03 for goods with invoices:

i. In the CX/VAT Registration Number field, enter the CX or VAT Registration number of the supplier.

ii. In the Invoice/Bill of an entry Number field, enter the invoice/ bill of entry number.

iii. You have to choose the Invoice/Bill of entry Date using the calendar.

iv. You need to enter the details of the item.

v. Click on the ADD button.

vi. Click on the SAVE button.

vii. A success message will be displayed and the invoice gets added. You can click the edit/delete button to edit/ delete the invoices (under Actions). Click on the BACK button.

2. ITC03 for Goods without invoices:

Note: If you have more than 500 Records, then use upload functionality to upload the invoices

Select the Registered Under (GST/CX/VAT).

Adding GST Invoice in ITC 03 for Goods without Invoices:

i. In the ‘GSTIN’ field, you need to enter the GSTIN number of the supplier.

ii. You have to enter the details of the item.

iii. Click on the ADD button.

iv. Click on the SAVE button.

v. A success message is displayed and invoice is added. You can click edit/delete button to edit/ delete the invoices (under Actions). Click the BACK button.

Adding CX/VAT Invoice in ITC 03 for Goods without Invoices:

i. In the CX/VAT Registration Number field, enter the CX or VAT Registration number of the supplier.

ii. Enter the details of the item.

iii. Click the ADD button.

iv. Click the SAVE button.

v. A success message is displayed and invoice is added. You can click edit/delete button to edit/ delete the invoices (under Actions). Click the BACK button.

Step 4:

Upload Chartered Accountant’s Certificate /Cost Accountant’s details. Update details regarding firm, membership and certificate date. This certificate is mandatory if some details are missing or some invoices are not available.

Step 5:

On the main page, you need to choose the tab – ‘Amount of ITC Payable’ and ‘Paid’ option. Then, the Electronic Cash Ledger Page Displays.

Step 6:

Here, on the Electronic Cash Ledger Page, the column ‘paid through ITC’ is auto-populated. However, you can edit it if needed. If there is cash in the ECL i.e. the Electronic Cash Ledger then it gets deducted and if not, cash payment has to be made. For cash payment, a challan is to be generated.

The challan will get generated with auto-populated details of the amount that needs to be paid. The taxpayer can make the payment using NEFT/RTGS. He can also choose the offline option.

The form can be previewed before making the final payment with the help of the ‘Preview’ button.

Click on ‘Make Payment’ if everything is accurate as you cannot make any changes later. Then pay the amount liable. Later, Click on ‘View debit entries in cash/ credit ledger’ for tax payment to see the updated balance in the Electronic Cash Ledger.

Step 7:

You need to verify the form ITC-03 with DSC or EVC. After making the final payment and checking the ELC, a digital signature has to be attached and the form can be filed. The taxpayer has to sign the form using either a DSC or EVC.

Step 8:

Download return filed for future reference.

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