Composition scheme

[CA Adarsh]

Whether Can ITC-01 filed in current year for opt out of composition schemes on 31-03-2024? Whether it will 2 different financial year fy 23-24 and fy 24-25? Because due date 30-04-2024above query due following provisions ITC-01 can be filed only once in financial year

[KASTURI SETHI]

Dear Querist,

Two financial years are not involved. The query is not properly drafted. It is vague.

Pl. redraft.

[CA Adarsh]

Query is tax payer opt out of composition scheme on 30-03-2024 and became regular tax payer.As per 18(1)(c) say tax payer can claim ITC 1 year from date of opt out and can filed once in financial year within 30  days from date of opt out

In current case 30 days falls due on 29-04-2024 which is FY 24-25 and date of opt out is 30-03-2024 in FY 23-24. 
So query if I file itc-01in FY 24-25 pertaining to FY 23-24 but within due date of 29-04-2024.

I am opinion that to filed once in a financial year can be different from FY of opt out and date of filing ITC-01 falling in different FY

[Shilpi Jain]

I am not able to locate the provision which states that ITC-01 can be filed only once in the FY.

Also, the provision is clear, file within 30 days of being eligible for credit and that credit not older than 1 year can be claimed.

[Ganeshan Kalyani]

I agree with the views of the expert.

AI Summary

Input tax credit timing: file ITC 01 within the statutory window to claim credits despite fiscal year crossover. The issue is whether ITC 01 filed after opting out of the composition scheme on 30 March may be filed in the next fiscal year when the statutory filing window from the opt out date falls in that year. The discussion emphasises that entitlement to transitional input tax credit is subject to a one year lookback and must be claimed within the prescribed filing period from the date of becoming eligible, and that contributors did not locate a provision restricting ITC 01 to once per financial year.