Filing of itc 03

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Ruchita Patni (Querist)
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23 April 2019 My client was registered under normal gst. Wef 1/4/2019, client has opted for composition scheme. The client is a retailer and there is balance lying in credit and cash ledger as on 31/3/2019. Do I need to file ITC 03 for ITC reversal or will I get the refund of excess input tax credit lying in my client's ledger?

CA Anita Bhadra

CA Anita Bhadra (Expert)
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25 April 2019 You need to file ITC 03 for reversal of reversal of credit . Balance available after required reversal will be lapsed . You won't get any refund for the purpose .

As per section 18(4) of the Act -when the taxpayer opts for composition scheme, he is held liable to pay an amount equal to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock and on capital goods, reduced by such percentage points as may be prescribed, on the day immediately preceding the date of opting for composition scheme.

The amount is to be paid by way of debit in the electronic credit ledger or electronic cash ledger.
It must be noted that after the payment of above-mentioned amount, any balance left of input tax credit in electronic credit ledger will lapse.

Ruchita Patni

Ruchita Patni (Querist)
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25 April 2019 But my client is a retailer who buys from wholesaler and sells to customers. He has not availed any input credit on inputs in semi finished or capital goods. In fact while purchasing from the wholesaler he has paid gst. So now is he again liable to pay gst on those goods for which he has already paid gst while purchasing?

CA Anita Bhadra

CA Anita Bhadra (Expert)
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25 April 2019 ITC 03 is a form that is filed in special circumstances when input tax credit that has been availed has to be reversed.

In case your client has not availed , balance lying in credit & cash ledger will be lapsed .
He need not to pay

Ruchita Patni

Ruchita Patni (Querist)
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25 April 2019 Okay but if my client does not file ITC 03 within 60 days (as per requirement of law) then his registration for composition scheme wont be cancelled right?

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