Complete Guide to Prepare GST ITC-03 with Offline Utility

1. FAQs on FORM GST ITC-03 Offline Utility

Q1. What are the features of FORM GST ITC-03 Offline Utility?

The Key Features of FORM GST ITC-03 Offline Utility are:

  • The ITC-03 details can be prepared offline with no connection to Internet.
  • Most of the data entry and business validations are in-built in the offline tool reducing errors upon upload to GST Portal.

Q2. How can I download and open the FORM GST ITC-03 Offline Utility in my system from the GST Portal?

  1. Access the GST Portal gst.gov.in .
  2. Go to Downloads > Offline tools > FORM GST ITC-03 Offline Tool button and click on it.
  3. Unzip the downloaded Zip file which contain ITC_03_Offline.xls excel sheet
  4. Open the ITC_03_Offline_Utility.xls excel sheet by double clicking on it.
  5. Read the Read me text file and help instructions on excel sheet.

Q3. What are the basic system requirements/ configurations required to use FORM GST ITC-03 Offline Utility?

The offline functions work best on Windows 7 and above, with Internet explorer 10+ and MSEXCEL 2007 and above. Detailed system required are available at (https://www.gst.gov.in/download/returns ).

Q4. How do I open or launch the FORM GST ITC-03 Offline Utility?

One can launch the FORM GST ITC-03 Offline Utility by double clicking the downloaded ITC_03_Offline_Utility Excel sheet.

Q5. Where can I find the detailed user manual of the FORM GST ITC 03 Offline Utility?

The detailed user manual can be downloaded along with the FORM GST ITC-03 Offline Utility as a read me text document and help instructions on excel sheet.

Q6. Is Offline tool mobile compatible?

As of now ITC 03 Offline tool cannot be used on mobile. Currently, ITC 03 Offline tool can only be used on desktops.

Q7. Who needs to file GST ITC-03?

Form GST ITC-03 is to be filed by taxpayer who has availed input tax credit (ITC) and

  • Who opts for composition scheme or
  • Where goods or services or both supplied by him become wholly exempted

Q8. What is GST ITC-03?

GST ITC-03 is a Form to be filed to pay an amount through the common portal, by way of debit in the electronic credit ledger or electronic cash ledger equivalent to credit availed in respect of:

  • Inputs held in stock, and
  • Inputs contained in semi-finished goods or finished goods held in stock, and
  • Capital goods held in stock

by taxpayer who opts for composition scheme or where goods or services or both become wholly exempted.

Q9. What is to be filed in GST ITC-03?

Details of stock, on the day immediately preceding the date of exercising the option or as the case may be, the date of such exemption, of inputs held in stock, inputs contained in semi-finished or finished goods held in stock, and capital goods on which input tax credit is availed and same needs to be reversed or paid if utilized, under section 18(4).

Q10. What are the preconditions for filing GST ITC-03?

  • Taxpayer has filed intimation in Form GST CMP-02 to opt for composition scheme or
  • Government has issued notification regarding exempting any supplies of goods or services or both supplied by taxpayer have become wholly exempted.
  • Taxpayer has availed ITC in respect of input held in stock and input contained in semi-finished goods or finished goods held in stock and on capital goods held in stock.

Q11. If I have opted to pay tax under composition, by when do I need to file GST ITC-03?

  • In case an intimation in Form GST CMP-02 has been filed on or before 31st March, 2018, taxpayer shall furnish GST ITC-03 within a period of 180 (one hundred eighty) days from the day on which he commences to pay tax under composition.
  • In case an intimation in Form GST CMP-02 is filed after 31st March, 2018, taxpayer shall furnish GST ITC-03 within a period of 60 (sixty) days from the commencement of the financial year for which the option to pay tax under composition is exercised.

Q12. Do I need to file GST ITC-03 only for the GSTIN for which I have filed intimation to opt for paying tax under Section 10?

Any intimation filed to pay tax under Section 10 in respect of any place of business in any State or Union territory shall be deemed to be an intimation in respect of all other places of business registered on the same Permanent Account Number. Thus form GST ITC-03 needs to be filed for all GSTINs on same PAN.

Q13. From where can I file GST ITC-03?

Login with valid credentials to the GST Portal and click the Services > Returns > ITC FORMS > ITC03 command to file GST ITC-03.

Q14. What details are required to be furnished in GST ITC-03?

Details of quantity and value of all stock of inputs held in stock, inputs contained in semi-finished or finished goods held in stock, and capital goods has to be furnished where invoices are available and where invoices are not available separately.

Q15. What is the value to be adopted for filling details where invoices are not available?

Where the invoices for determining the value are not available, the registered person shall estimate the amount based on the prevailing market price of the goods on the effective date of the occurrence of any of the events which have necessitated the filing of Form GST ITC-03. These details furnished shall be duly certified by a practicing chartered accountant or cost accountant. Such Certificate has to be uploaded with the Form GST ITC-03 before filing the Form.

Q16. What is the action to be taken after the Form GST ITC-03 is saved?

Once Saved, the option of Offset liability in Table 6 will be available to the taxpayer. Tax payer will click the ‘OFFSET LIABILITY’ button through which the system will check the total liability being paid off with the balance available in the respective Electronic Cash Ledger or Electronic Credit Ledger.

Q17. What is ‘Open Downloaded ITC-03 JSON/Error File’ button for in excel?

‘Import data from File’ button is used to import the data file or the error file, downloaded from the online portal (in. JSON format) and open it in offline tool for modification. This will auto populate the details in the offline tool basis the data entry sections in this file.

Q18. What is ‘Generate JSON File to Upload’ button for in excel?

‘Generate File to Upload’ button is used to create the data file (in .JSON format) of details and modifications in offline tool. The data file will be uploaded in the online GST portal for further processing of Form GST ITC-03.

2. FORM GST ITC-03 Offline Utility: An Overview

The ITC-03 Offline utility is provided to taxpayers who has availed input tax credit (ITC) and have opted for composition scheme or Where goods or services or both supplied by him become wholly exempted.

To facilitate the furnishing of records in short-time an easy to use excel offline tool has been made available for preparation of ITC-03 statement in download section of GST portal. All the details can be added in offline mode and later uploaded on GST portal to furnish the ITC-03 for the Return Period.

3. Downloading the FORM GST ITC-03 Offline Utility

Downloading the FORM GST ITC-03 Offline Utility is a one-time activity, however, it may require an update in future if the Tool is updated at the GST Portal. Please check the version of the offline utility used by you with the one available for download on the GST Portal at regular intervals.

To download and install the FORM GST ITC-03 Offline Utility to prepare the FORM GST ITC-03 return offline, perform the following steps:

You can download the FORM GST ITC-03 Offline Utility from the Portal without login to the GST Portal.

  1. Access the https://www.gst.gov.in/
  2. The GST Home page is displayed. Click the Downloads > Offline tools > ITC03 Offline Tool.

3. ITC03 Downloads page is opened. Click Download.

4. The ITC03 Offline Tool is downloaded in Downloads folder.

The download of the ITC03 Offline Tool usually takes 2-3 minutes to download depending on the Internet speed.

5. Before you Unzip and open the ITC03 offline tool, ensure that file is not corrupted

To test if the file is corrupted or not, Match one of the values provided in your downloaded file with the ones mentioned under Downloads of ICT03. If there is an exact match, then your file is not corrupted. Else, download again.
To find the values provided in your downloaded file follow steps below:

a. Open Windows PowerShell,
To Start Windows PowerShell, use the Search box on the Start menu, and type PowerShell.
Click Windows PowerShell.

b. Window PowerShell opens.

c. Provide the command in below format and enter.
Command: Get-FileHash <<FileUrl>> Algorithm <<SHA256>>
e.g. Get-FileHash C:\Users\Test\Downloads\ ITC_03_Offline_v1.0.zip -Algorithm SHA256

d. Compare the Hash value that you have received with the has value provided in ITC_03_Offline_v1.0 downloads page.

Note: Above mentioned Unique values will change if Offline Utility Version changes.

e. If the hash value matches, unzip the downloaded folder.

4. Installation of the FORM GST ITC-03 Offline Tool

Once the download of the FORM GST ITC-03 Offline Tool is complete, you need to unzip these downloaded files on your machine.

1. Unzip the downloaded files and extract the files from the downloaded zip folder ITC_03_Offline_Utility.zip. Zip folder consists of the ITC_03_Offline_Utility file as shown in the screenshot below.

  1. Double click the ITC_03_Offline_Utility file.
  2. Click the Enable Content button in the excel sheet.

This Excel workbook template has 4 worksheets:

  1. Instruction_sheet – Contains introduction and help instructions.
  2. Home –
    • Open Downloaded ITC-03 JSON/Error File: Import and edit existing JSON file
    • Generate JSON  File  to  Upload:  Generate  JSON  file  from  the  data  entered  in  Sheet ‘Invoice_Available’ & ‘Invoice_Not_Available’.
  1. Invoice_Available – Enter details of ITC-03 declaration with Invoices.
  2. Invoice_Not_Available – Enter details of ITC-03 declaration without Invoices.

5. Prepare FORM GST ITC-03 Return

Let us take an example where you need to prepare the FORM GST ITC-03 Offline Tool. To prepare the FORM GST ITC 03 Return, you need to perform

using the FORM GST ITC 03 the following steps:

1. Enter details in the Available worksheets of FORM GST ITC-03 Offline Tool.

2. Generate JSON file using ‘Generate File to Upload’ button

3. Upload the generated JSON on GST Portal. Preview the details uploaded, submit, offset liability and File return on the GST portal

1. Enter details in the Invoice_Available and Invoice_Not_Available worksheet of FORM GST ITC-03 Offline Tool

Please ensure that you download the latest version of FORM GST ITC-03 Offline Tool from the GST portal. https://www.gst.gov.in/download/returns

2. Launch the FORM GST ITC 03 Excel based Offline Tool and navigate to worksheet Home.

3. In the GSTIN of taxpayer field, enter the GSTIN.

4. Select relevant ‘Section of filing’ from drop-down list.

5. Select SEZ Unit/Developer –Yes/No from drop-down list.

6. Under section 4(a)Details of Application filed to Opt for Composition Scheme, Enter (i) Application Reference Number (ARN) and Date of Opting in into composition scheme.

Note: If taxpayer selects 4(b) Goods were exempted under section- filing, enter the Date from which exemption is effective.

7. Navigate to next worksheet Invoice_Available.

8. Enter details in each field as applicable.

9. Once all details are entered, click the Validate Sheet button to validate the Invoice_Available worksheet.

Note: Only standard values available in any of drop down list can be selected. If a slight difference is found, it may not be detected in validation but will throw error while uploading on the Portal.

In case of successful validation:

10. The error column shows This row is validated.

In case of unsuccessful validation:

8. A pop-up message is displayed that Errors are shown with red colored cells. Click the OK button.

a. In case of validation failure; check for Errors column that have failed validation and correct errors with red colored cells.

 

To view the comments for fields with errors, you can click the Review tab > Show All Comments link.

9. Once all errors are rectified, click the Validate Sheet button to validate the Invoice_Available worksheet.

10. The error column shows This row is validated.

11. Navigate to the next worksheet Invoice_Not_Available.
You can also click the Next button to navigate to worksheet Invoice_Not_Available.

12. Enter details in each field as applicable.

13. Once all details are entered, click the Validate Sheet button to validate the Invoice_Not_Available worksheet.

Note: In the worksheet ‘Invoice_Not_Available’, Goods Type should be selected from the drop-down only.

Copy-Paste from ‘Invoice_Available’ may not be made in any case.

In case of successful validation:

14. The error column shows This row is validated.

In case of unsuccessful validation:

15. A pop-up message is displayed that Errors are shown with red colored cells. Click the OK button.

b. In case of validation failure, check for Errors column that have failed validation and correct errors with red colored cells.

To view the comments for fields with errors, you can click the Review tab > Show All Comments link.

16. Once all errors are rectified, click the Validate Sheet button to validate the Invoice_Not_Available worksheet.

17. The error column shows This row is validated.

2. Generate JSON file using ‘Generate File to Upload’ button

1. Upon successful validation; navigate to worksheet Home.
You can also click the Next button to navigate to worksheet Home.

2. Click Get Summary to generate summary of the details updated in worksheets Invoice_Available and Invoice_Not_Available.

3. Click OK to proceed.

4. Once summary is generated and verified, Click the Generate JSON File to Upload button to generate JSON for upload on GST Portal.

5. A message is displayed that processing may take some time. Click the OK button.

6. A confirmation message is displayed that export of JSON file has completed. Click the OK button.

JSON would be generated only if the worksheet has been successfully validated.

7. Navigate to the folder where you want to save the JSON file. Enter the file name and click the SAVE button.

Notice the JSON file created.

3. Upload the generated JSON on GST Portal

1. Access the https://gst.gov.in/ URL. The GST Home page is displayed.
2. Click the Services > Returns > ITC Forms command.

3. The GST ITC Forms page is displayed.
4. In the GST ITC-03 tile, click the PREPARE OFFLINE button.

5. Select the Section from drop down list.

6. The Offline Upload for FORM GST ITC-03 page is displayed. Click the Choose File button.

7. Browse and navigate the JSON file to be uploaded from your computer. Click the Open button.

The uploaded JSON file would be validated and processed. Upon successful validation and processing the details entered would be populated as a summary.
In case of validation failure upon processing; errors if any would be shown on the GST Portal.

Please note it is possible to upload JSON multiple times on GST portal till submission. However, earlier uploaded data would be overwritten. Preview would reflect only the last data uploaded.
If the invoice item is already available from previous upload, then all the invoice items under that invoice will be replaced with the items which taxpayer is uploading this time. E.g: Invoice ABC had 5 items earlier from previous upload, now Taxpayer is uploading 2 items under invoice ABC. Then in database challan ABC will have only 2 items, replacing previous 5 items.

To add these items under existing invoice, user needs to enter all the items again

Post successful upload of data on GST Portal, you can preview the form and file FORM GST ITC-03 return.

4. Open Downloaded Return File for ITC 03

1. To Open the Downloaded Return file for ITC03, click “Open Downloaded ITC-04 JSON/Error File” on Home tab.

2. Browse the JSON(.json) file and click the Open button.

3. Select the downloaded JSON (.json) file and click on OK to proceed. Once successfully imported, you will get the message “Data successfully imported”

4. Now the sections for which you entered details of invoices/taxes to upload in GST portal will be populated with data automatically.
5. Modify the invoice details as per requirement.
6. After making the modifications, click the Validate Sheet button to validate the sheets.

7. Pop-up saying “Sheet successfully validated. No error(s) found” appears once sheet is validated successfully.

8. Click on ‘Generate JSON File to upload’ to generate JSON(.json) file for upload of ITC03 return details prepared offline on GST portal.
9. Follow steps mentioned in ITC03 JSON upload on GST Portal section to file ITC03.

5. Submission and Filing of ITC 03

1. Access the https://gst.gov.in/ URL. The GST Home page is displayed.
2. Click the Services > Returns > ITC Forms command.
3. The GST ITC Forms page is displayed. Select GST ITC-03 > INITIATE FILING.

4. Select the Section from drop-down list
5. Click the PROCEED button.

6. In the Particulars of certifying Chartered Accountant or Cost Accountant form update the Name of the Firm Issuing certificate, Name of the Certifying Chartered Accountatn/Cost Accountant, Membership Number, Date of Issuance of Certificate.
7. Upload the Certificate and click SAVE CA DETAILS.

8. Select ‘Amount of ITC payable and paid’ tile.

9. Enter the payment details and click MAKE PAYMENT tab.

10. Once payment is successful, click OK to proceed for filing.

11. Once the payment is completed, ‘Debit entries in Cash/Credit Ledger for tax payment’ details reflect under the tile.

12. Click FILE RETURN.

13. Preview of the ITC-03 draf can be seen with PREVIEW DRAFT ITC-03.

14. Draft opens in PDF format.

15. After preview is verified, proceed with filing the return. Click FILE RETURN.
16. Select the checkbox.
17. Select the Authorized signatory from the drop-down list and click the FILE RETURN (With EVC or DSC) button.

18. Once the Verification is completed, ARN will be generated and status is changed to Filed.

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