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Failure in filing ITC 03

04 November 2019

what are the consequences? i have opted for composition scheme from 1-4-19 and not filed ITC 03 till now.. now i want to convert into regular taxability. should i file iTC 3 first and then cancel composition? please any professional advice?

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8 Replies

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 04 November 2019

In term of Section 18(4) of CGST Act you are required to file ITC 03 when you opt to pay tax under Section 10
As you have opted for the same on 1/4/2019 , so you can file ITC 03 upto 30/9/2019, but As you have not filed the same then pay the same by computing the Tax liability on stock as on 1/4/2019, & set-off by filing DRC .03.

1. Now you cannot file ITC 03
2. Compute tax liability on stock as on 1/4/2019
3. Pay in cash ledger or reverse it in credit ledger by filing DRC 03

gaurav dhole (39 Points)
Replied 05 November 2019

Thanku so much Mr. pankaj rawat . Can u help me with one more thing? ITC 03 is available online now as well. should i try to fill it and file?

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 05 November 2019

Yes it's available .... But it won't accept the entries while submition give you an error

subhagan sreerangam (7039 Points)
Replied 06 November 2019

ITC 03 is form that is filed in special circumstances when input tax credit that has been availed has to be reversed.Are you a person who opted for Composition Scheme this year or has any of the item on which ITC availed become exempt even before you could utilise? Use ITC-03 to reverse the ITC.Refer the chart Composition dealer >Non avay of ITC >ITC has to be reversed >File Form ITC-03 and Taxable goods > Becomes exempt >ITC has to be reversed >File Form ITC -03.You Login GST Portal using login credential and Select service tab >Returns > ITC form drop down options >select GST ITC-03 prepare online declaration for intimation of ITC reversal/payment of tax in inputs held in stock, inputs contained in semi-finished and finished goods held in stock and capital goods under sub- section (4) of section 18.

Hina Agarwal (2 Points)
Replied 27 December 2020

under which section DRC-03 need to be filed in case of failure in filing ITC-03 as I have opted for composition from 1/04/2020

Anu Sri (2 Points)
Replied 06 August 2021

I have opted to Compostion dealer for the F.Y,'21-22 by filing CMP-02 before 31.03.2021. But, we have not filed ITC-03. Can we file now?? Any late fees ???