If you file monthly or quarterly returns, you deal with GSTR-2B and GSTR-3B. But when your business status changes, the regular returns do not have a place to report the sudden gain or loss of ITC on the stock sitting in your warehouse. The government handles these transition events with specific declaration forms.
ITC-01: Claiming credit on new registration or scheme switch
Form GST ITC-01 is a declaration to claim Input Tax Credit on inputs held in stock, semi-finished goods, and finished goods on the day immediately preceding the date you become liable to pay tax. It is governed by Section 18(1) of the CGST Act.
You file ITC-01 in four situations.
- You cross the turnover threshold and apply for registration within 30 days.
- You take voluntary registration.
- You switch from the composition scheme to the regular tax scheme.
- Your previously exempt supplies become taxable.
The form must be filed within 30 days of becoming eligible. If the total credit claim across all tax heads exceeds ₹2 lakh, the declaration must be certified by a practicing Chartered Accountant or Cost Accountant.
Note on capital goods: You can only claim ITC on capital goods in two of the four situations: switching from composition to regular, and exempt supplies becoming taxable. The claim is reduced by 5% per quarter from the invoice date.
ITC-03: Reversing credit when exiting the regular scheme
Form GST ITC-03 does the exact opposite of ITC-01. It is used to reverse credit when a regular taxpayer leaves the normal tax system.
You file ITC-03 when you switch from the regular scheme to the composition scheme, or when your taxable supplies become wholly exempt. Under Section 18(4), you must calculate the ITC on inputs held in stock and capital goods on the preceding day, and reverse it by debiting your electronic credit ledger or cash ledger.
ITC-04: Tracking goods sent for job work
Form GST ITC-04 has nothing to do with scheme changes. It tracks goods moving between a principal manufacturer and a job worker without payment of tax under Section 143.
The principal must furnish details of challans for goods dispatched to a job worker, or received back. Inputs must be returned within one year, and capital goods within three years. If they are not brought back in time, they are treated as a taxable supply from the day they were originally sent out.
Summary of forms
| Form | Purpose | Filed by |
|---|---|---|
| ITC-01 | Claiming opening ITC | New registrations, switch to regular |
| ITC-03 | Reversing existing ITC | Switch to composition, supplies become exempt |
| ITC-04 | Reporting challan details | Principals using job workers |
“a person who has applied for registration under this Act within thirty days from the date on which he becomes liable to registration and has been granted such registration shall be entitled to take credit of input tax in respect of inputs held in stock” Section 18(1), CGST Act
Check your own GSTR-2B
Once you are registered and claiming regular monthly ITC, match your purchase register against GSTR-2B securely in your browser to spot missing invoices.
Last checked: 10 October 2026. Sources: CGST Act, CGST Rules.