ITC-01 / 02 / 03 / 04

In the Goods and Services Tax (GST) system in India, ITC stands for Input Tax Credit, which is a mechanism to avoid the cascading effect of taxes. ITC-01, ITC-02, ITC-03, and ITC-04 are different forms related to the claiming and utilization of Input Tax Credit. Here’s an overview of each:

1. ITC-01: This form is used for furnishing the details of goods held in stock for claiming Input Tax Credit by a newly registered person under GST. When a person becomes liable to register for GST, they may have goods held in stock on which they’ve already paid taxes. ITC-01 is used to claim credit for taxes paid on such goods.
2. ITC-02: ITC-02 is used for transferring the Input Tax Credit when there is a change in the constitution of a registered person on account of sale, merger, demerger, amalgamation, lease, or transfer of the business, among others. This form facilitates the transfer of ITC to the transferee or successor entity.
3. ITC-03: This form is used for reversing Input Tax Credit availed earlier in certain situations. For example, if the outward supply is not made within the prescribed time or if the inputs or capital goods on which credit was availed are used for non-business purposes, ITC-03 is used to reverse the credit.
4. ITC-04: ITC-04 is a form for furnishing details of goods or capital goods sent to a job worker or received back from a job worker. Under GST, when goods are sent to a job worker for further processing, the principal (sender) can claim Input Tax Credit on such goods. ITC-04 is used to report these transactions.

Each of these forms serves a specific purpose in the GST system and is used by registered persons to comply with the input tax credit provisions effectively. Proper understanding and timely submission of these forms are crucial for maintaining compliance with GST regulations.