Shifting from Regular to Composition

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Failing to file the ITC-03 form when transitioning from the regular tax scheme to the composition scheme can have serious repercussions. You risk losing the benefits of the composition scheme, potentially facing a show-cause notice, and being required to reverse any Input Tax Credit (ITC) previously claimed, along with applicable interest.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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05 May 2025 WHAT ARE THE CONSEQUENCES OF NON FILING OF ITC-03 WHEN SHIFTING FROM REGULAR TO COMPOSITION

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 May 2025 Failure to file ITC-03 can lead to the denial of the composition scheme benefits. The tax authorities may issue a show-cause notice, and if you do not comply, you may lose your eligibility to remain under the composition scheme. You may have to reverse the Input Tax Credit (ITC) along with interest claimed earlier.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 September 2025 Good luck.

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