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!"
It may be used as a pronoun to refer to a crucial situation or culmination. "This is It!" "Is that It?"
Informal. It is used to refer to something that is the most desirable. "He thinks he is really It."
It may be used as a noun. It is used to refer to a human or non-human entity which is an animate being where the sex is unknown or irrelevant.
In the game of tag: "Someone is selected who is It?"
A neutered animal: "The dog is an It."