Its is an adjective and the possessive form of the pronoun it.
It's is a contraction (for it is or it has), that must always have an apostrophe.
Its is used as adjective. "The cat chased Its tail." [The cat chased the tail belonging to the cat.] "The bank closed Its doors." [The bank closed the doors belonging to the bank.] The adjective Its never means 'it is.'
It may be used as a pronoun, It is used to refer to that which has been previously mentioned. "The car was very fast. It had never been neaten in a race."
It may be used as a pronoun to refer to a human or non-human entity which is an animate being where the sex is unknown or irrelevant. "Someone knocked at the door, but left before I could find out who It was," "The dog appeared at the gate. Then It was gone."
It may be used as a pronoun to refer to objects. "He washed the medallion in the stream until It was clean."
It may be used as a pronoun as the subject of a third person singular verb. "It is raining out."
It may be used as a pronoun as an anticipatory subject. "Is It likely that there will be rain tomorrow?"
It may be used as a pronoun as an anticipatory subject to emphasize a therm that is not itself a subject. "It was on the fourth that the document was signed."
It may be used as a pronoun as a general condition or state of affairs. "I can't stand It any longer!"