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Utilizing the Offline Utility for GST ITC-01 Filing

This guide provides a comprehensive overview of how to use the offline utility for filing Form GST ITC-01. It details the steps for downloading and installing the Excel-based tool, preparing the declaration, generating the JSON file, and successfully uploading it to the GST portal. Additionally, the article explains the process for downloading and rectifying errors identified during the online submission, ensuring a smooth filing experience for newly registered taxpayers claiming Input Tax Credit.

📖 4 min read read🏷️ Input Tax Credit (ITC)

Individuals or entities recently registered under the Goods and Services Tax (GST) system are required to submit a declaration using Form GST ITC-01. This declaration allows them to claim input tax credit (ITC) on any existing stock of inputs, capital goods, or finished goods held at their business premises at the time of their GST registration. Claiming ITC on these items is permissible only after successful registration, and submitting Form ITC-01 is a mandatory step for this claim.

Who Can Use the Offline Tool for ITC-01

The GST ITC-01 offline utility is an Excel-based application designed to assist taxpayers in preparing their returns without an internet connection. This tool is specifically beneficial for newly registered taxpayers who wish to claim Input Tax Credit on inventory they possessed at the time of their GST registration.

Prerequisites to Use Offline Tool for ITC-01

To effectively use the offline tool for ITC-01, taxpayers must ensure their systems meet the following minimum requirements:

  • Operating System: Windows 7 or a more recent version.
  • Software: Microsoft Excel 2007 or any newer version.

Downloading and Installing the ITC-01 Offline Tool

To obtain and set up the utility, follow these instructions:

  1. Access the official GST portal.
  2. Navigate to the 'Downloads' section, then 'Offline Tools', and select 'ITC-01 offline tool'.
  3. On the dedicated download page for ITC-01 offline utility, click the provided download link.

The tool will be saved to your device's downloads folder. Before proceeding to unzip, it is crucial to verify the file's integrity to prevent corruption:

  • Compare one of the values provided with the download file against the information on the ITC-01 offline tool downloads page. A precise match confirms the file's integrity; otherwise, re-download the file.
  • Click on the 'Important!' link.
  • An instruction box will appear, directing you to open Windows PowerShell. This can be found via your Windows PC's search function.
  • Within Windows PowerShell, execute the command: Get-FileHash <<FileURL>> Algorithm <<SHA256>> (e.g., Get-FileHash C:\Users\Test\Downloads\ITC_01_Offline_v1.0.zip -Algorithm SHA256).
  • Compare the hash value generated with the one displayed in the instructions box on the GSTR_ITC01_Offline_Utility downloads page. If they match perfectly, proceed to unzip the downloaded folder.
  1. Choose your desired saving location for the downloaded file.
  2. Extract all files from the downloaded zip archive.

Once extracted, open the Excel file. The workbook includes three main worksheets:

  • Help Instructions: Provides an overview and operational guidelines.
  • Import Export File: This sheet allows importing and editing existing JSON files and generating the final JSON file for upload based on data entered in other sheets.
  • Sec_18_1_A or Sec_18_1_B or Sec_18_1_C or Sec_18_1_D: The specific worksheet displayed here depends on the selection made in the 'Claim Made Under' field within the 'Import_Export_File' worksheet.

Preparing ITC-01

To prepare Form ITC-01 using the offline tool, follow these sequential steps:

  1. Access the 'Import_Export_file' worksheet. Within this sheet:
  • Input your Goods and Services Tax Identification Number (GSTIN).
  • Indicate whether the user is registered as a Special Economic Zone (SEZ) by selecting 'Yes' or 'No'.
  • Choose the appropriate claim section under the 'Claims made under' area.
  • Provide the 'Date of grant of registration' as it corresponds to the selected claim section.
  1. Proceed to the 'Sec_18_1_A' tab (or the relevant section tab) and diligently complete all required fields within the worksheet.

Once all information is entered, click the 'Validate Sheet' button.

  • Successful Validation: A 'This row is validated' message will appear in the sheet validation column.
  • Unsuccessful Validation: A pop-up message will indicate detected errors. Click 'OK'. Errors will be highlighted in red under the 'Sheet validation errors' column, accompanied by a message instructing you to check the red-colored cells.
  1. Rectify any errors identified, following the guidance provided in the yellow dialogue box. After all corrections are made, click 'Validate Sheet' again. If no further errors exist, a confirmation message will be displayed.

Generating the JSON File

To create the JSON file for upload:

  1. Return to the 'Import_export_file' tab and click the 'Generate JSON file to upload' button.
  2. An alert will inform you that the process may take a moment. Click 'OK'. Following a brief interval, a confirmation message will appear, indicating that the JSON file export is complete.
  3. Choose the desired directory to save the JSON file. Assign a name to the file and click 'Save'.
  4. The JSON file will then be successfully generated in your specified location.

Uploading the Generated JSON File

To upload your prepared ITC-01 JSON file to the GST portal:

  1. Log in to the official GST portal.
  2. Navigate through the menu: Services > Returns > ITC Forms.
  3. On the GST ITC forms page, locate the ITC-01 tile and click the 'Prepare offline' button.
  4. From the provided drop-down list, select the specific section under which your claim is being made, then click 'Proceed'.
  5. On the GST ITC-01 offline upload page, click the 'Choose file' button.
  6. Browse your system to find and select the JSON file you generated for upload, then click 'Open'.

The portal will then validate and process the JSON file. If validation is successful, the information you entered will populate the summary. Any validation errors will be indicated on the GST portal itself. After successful upload and validation, you can proceed to submit and file Form GST ITC-01 using either a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC), following the relevant steps for online filing after choosing the 'Prepare offline' option.

Rectifying Errors Using the Offline Tool for ITC-01

If errors occur during the JSON file upload, the offline tool assists in rectification.

Downloading the Error Report

If the upload history table indicates 'Processed with errors' after attempting to upload the JSON file:

  1. Click the 'Generate error report' link. Once the report is ready, click 'Download error report' to save the error file.
  2. The error report will download as a zip file. Save it to your system, then unzip the folder. The unzipped content will include a JSON file containing the errors.

Opening the Downloaded JSON Error File

To open and address the error JSON file for GST ITC-01:

  1. Navigate to the 'Import_export_file' tab. Click on 'Open downloaded ITC-01 error JSON file'.
  2. A file dialog box will appear. Browse to locate and select your saved error file, then click 'Open'.
  3. A confirmation message, 'Data successfully imported', will be displayed. Click 'OK' to continue.
  4. Proceed to the relevant worksheet tabs. The 'GST Portal Validation Errors' column will highlight the errors, which you should then correct.
  5. After completing all necessary corrections, click on the 'Validate sheet' button. The validation process will proceed as previously described. You can then follow the steps from step 4 onwards for filing Form GST ITC-01 on the GST Portal.

Frequently Asked Questions

What is GST and how does it benefit the Indian economy?
Goods and Services Tax (GST) is an indirect tax introduced in India to replace multiple cascading taxes levied by central and state governments. It aims to streamline the tax structure, reduce complexity, and create a common national market, ultimately benefiting the economy through increased transparency and ease of doing business.
Who is required to register under GST in India?
GST registration is mandatory for businesses exceeding a specified turnover threshold (which varies by state and type of supply) and for certain specific categories of taxpayers regardless of turnover, such as e-commerce operators, non-resident taxable persons, and those involved in inter-state supplies.
What are the different components of GST in India?
In India, GST is levied in four main components: Central GST (CGST) for intra-state supplies, State GST (SGST) for intra-state supplies, Integrated GST (IGST) for inter-state supplies and imports, and Union Territory GST (UTGST) for supplies within Union Territories without a legislature.
How does the Input Tax Credit (ITC) mechanism work under GST?
Input Tax Credit (ITC) allows registered businesses to claim credit for the GST paid on purchases of goods and services used for business purposes. This credit can then be utilized to offset the GST liability on their outward supplies, effectively preventing the cascading effect of taxes and reducing the overall tax burden.
What are the key types of GST returns filed in India?
Key GST returns include GSTR-1 for outward supplies, GSTR-3B for summary of outward and inward supplies and tax payment, GSTR-4 for composition taxpayers, GSTR-9 for annual returns, and GSTR-9C for reconciliation statements, among others, each with specific applicability and filing frequencies.
What is GST and how does it benefit the Indian economy?
Goods and Services Tax (GST) is an indirect tax introduced in India to replace multiple cascading taxes levied by central and state governments. It aims to streamline the tax structure, reduce complexity, and create a common national market, ultimately benefiting the economy through increased transparency and ease of doing business.
Who is required to register under GST in India?
GST registration is mandatory for businesses exceeding a specified turnover threshold (which varies by state and type of supply) and for certain specific categories of taxpayers regardless of turnover, such as e-commerce operators, non-resident taxable persons, and those involved in inter-state supplies.
What are the different components of GST in India?
In India, GST is levied in four main components: Central GST (CGST) for intra-state supplies, State GST (SGST) for intra-state supplies, Integrated GST (IGST) for inter-state supplies and imports, and Union Territory GST (UTGST) for supplies within Union Territories without a legislature.
How does the Input Tax Credit (ITC) mechanism work under GST?
Input Tax Credit (ITC) allows registered businesses to claim credit for the GST paid on purchases of goods and services used for business purposes. This credit can then be utilized to offset the GST liability on their outward supplies, effectively preventing the cascading effect of taxes and reducing the overall tax burden.
What are the key types of GST returns filed in India?
Key GST returns include GSTR-1 for outward supplies, GSTR-3B for summary of outward and inward supplies and tax payment, GSTR-4 for composition taxpayers, GSTR-9 for annual returns, and GSTR-9C for reconciliation statements, among others, each with specific applicability and filing frequencies.

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