In one of my dealer case his turnover exceed composition limit on Oct,2020 and he forgot to Opt-Out from composition scheme and now on January,2021 he wants to Opt-Out from composition scheme form Oct,2020 and also wants to take ITC throuhg ITC-01 form on closing stock of Oct,2020. Does portal allow me to do this like opt-out from scheme on Jan and open my regular return from tax period Nov,2020 and provide me ITC-01

Reply— A taxpayer can opt out of Composition levy in any of the two ways:

• Voluntarily opt out of Composition levy by filing Form GST CMP-04 on the GST Portal or
• Compulsorily removed out of Composition levy by the Tax Official at any time during the financial year.

In case, the taxpayer does not opt out of the Composition levy within 7 days of disqualifying event, proceedings for compulsory withdrawal from Composition levy can be initiated by the Tax Official.

A composition dealer is not eligible to claim ITC but as per section 18(1)(c) of CGST Act, where any registered person ceases to pay tax under section 10, he shall be entitled to take credit of input tax in respect of inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods on the day immediately preceding the date from which he becomes liable to pay tax under section 9. Provided that the credit on capital goods shall be reduced by such percentage points as may be prescribed.

The registered person shall within a period of thirty days from the date of becoming eligible to avail the input tax credit under sub-section (1) of section 18, or within such further period as may be extended by the Commissioner by a notification in this behalf, shall make a declaration, electronically, on the common portal in FORM GST ITC-01 to the effect that he is eligible to avail the input tax credit. Refer rule 40 of CGST Rules for more information. 

In your case the time limit is expired, therefore, you are not eligible to claim ITC on stock held by you.