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Form ITC 03 Not working (section 18.4 (a)

sathya kumar s (Accountant) (199 Points)

25 May 2020

Unable to find section 18.4 (a) in the drop down box which comes when we click GST-ITC 03 Tile on GST Portal. Opted for composition in march month and government extended last date to file the same but only section 18.4(b) is available for selection on GST Portal. Any solution....

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7 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 26 May 2020

Dear
If you have opted for composition scheme from Regular taxpayer , need to file ITC 03 Pas prescribed in rule 44.

Kindly note down that there is Section 18(4) available in law . so Section 18(4)(a) & Section 18(4)(b) is not prescribed in CGST Act.

Section 18(4) states that where any registered person as regular tax payer opt the composition scheme u/s 10 , is required to pay amount by way of debiting in the credit ledger or cash ledger, equivalent to the credit of input tax in Respect of input held in stock by Filing ITC 03.

Note : As per Section 18(1)(a) & (b) is required to file ITC 01.

So kindly check for it & select proper Section .

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sathya kumar s (Accountant) (199 Points)
Replied 26 May 2020

Sir i am attaching few screenshots from the portal. It shows only one option under Form GST ITC 03. i.e. Section 18.4(b). It is not applicable for migrants from regular to composition. Is it ok if i reverse ITC using DRC 03...?

Attached File : 1506715 20200526110902 sceenshots.pdf downloaded: 98 times

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 27 May 2020

Dear
can click on proceed to reverse the credit available in Stock .

yes you can reverse the ITC by filing DRC 03 also but there is no options therein to provide the Stock details on which the ITC need to be reverse or paid in cash .

sathya kumar s (Accountant) (199 Points)
Replied 29 May 2020

Sir I'm attaching another screenshot which is taken after clicking proceed. It is asking to state information like from which date exemption is effective etc... It is a mandatory field which not applicable to migrants from regular to composition. Why GST Portal is not yet enabling the option even though govt extended the due date to file form ITC 03 for those who went from regular to composition.

Attached File : 1506715 20200529104554 screenshot 2.pdf downloaded: 113 times

sathya kumar s (Accountant) (199 Points)
Replied 29 May 2020

Also our client has withdrawn from the composition scheme after being there in composition scheme for around one month due to some issues. Now they are regular taxpayers so there is a need to file form ITC 01 also for which the prescribed time limit is one month and it is nearing. As ITC 03 is not yet filed it is not possible to file ITC 01 to claim ITC on capital goods purchased. Now there is a threat of loosing the eligible ITC due to problem in GST Portal. How about proceeding without filing any ITC Forms as they are now regular taxpayer... Is there any problem in utilizing the ITC appearing on electronic credit ledger without filing ITC 03 and ITC 01.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 30 May 2020

Dear Sathya

As per Proviso under Rule 40 , the period of 30 Days can be extended by Commissioner, So it's better to get your doumentry proof of not able to file ITC 01 in time & submit same personally to your Jurisdiction.