Filing of itc 03
This query is : Resolved
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?
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.
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.
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?
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
In case your client has not availed , balance lying in credit & cash ledger will be lapsed .
He need not to pay
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?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- LTCG for Assmt year 26-27
- Soyabean hsn code and gst rate
- TDS related Query_Liquidated Damages
- NON- SUBMISSION OF LLP FORM 3
- Free lancer income
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
