There is always a doubt as to how a taxpayer can withdraw its remaining tax balance left with the government in case he chooses to cancel its GST registration. Many times it is left with the government while there are some options which may be considered. Let’s go through some example and study their case related to the ITC return:
A computer shop owner had a query regarding its ITC as he wants to shut down its business due to losing and wants to cancel the registration. He had 50 thousand or more in its credit ledge account and he is in question as to how he can withdraw this ICT from its account and get back his money.
The most considerable answer for this question might be that he must apply for cancellation of registration under Section 29(1) of the CGST Act, 2017 read with Rule 24(4) of CGST Rules, 2017. As per Section 29(5) of the CGST Act 2017, the registered taxpayer must pay a considerable amount when the registration is cancelled, by the means of debit in the electronic cash ledger which must be equal to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock, or capital goods or plant and machinery, on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher.
In another case of taking back the input tax credit for the goods not sent, there are two queries which have to be solved. 1st query states, Can one claim a refund of output tax which has already been paid? and in the 2nd query, it is asked, Does ITC, claimed against the said sale, have to be reversed?
Now coming to the answer of both these questions, there is a straight provisions including an issuance of credit note in accordance with Section 34 of the CGST Act, 2017 read with Rule 53 of the CGST Rules, 2017, seeking reduction of output tax liability in accordance with Section 43 of the CGST Act, 2017 read with Rule 73 of the CGST Rules, 2017. Also one must not that the ITC is not available with respect to the destroyed goods as mentioned in the provision with Section 17(5) (h) of the CGST Act, 2017.
Read Also: Step By Step Guide: GST Registration Online for New User on GST Portal
We are going to wind up our business but we have gst input tax credit on purchases made and there are stock with us
can we get the refund of input tax credit available in the gst portal
First you have to file GSTR 10 for the settlement of Balance ITC
Suppose we have a genuine GST Refund of last year and now we are closing down our business
and the department also knows that we have closed so are we eligible to get the GST refund of last year and if yes
Which section or document we can quote to the department to get the refund as department Thanks
You can claim the same by Filing GSTR-10
Department closed the Firm wef 31-01-2020 in March 2020 which we came to know in the Month of May 2020 when offices opened after Lockdown. We have filed a closure application in the month of July 2018 but as it was not closed even after 9 months we started to file the pending returns from Oct 2017 to March 2019 in the month of April 2019 and were regularly filing all the returns till Jan. 2020.
Dept. person closed the firm without any intimation or message or without checking that Input balances amounting to Rs 98756 were available in the Credit Ledger. Business is of Travels and so Input of a Car Purchased for the business of Travel is lying.
The dept. person informed to file Refund form RFD 01 but now they denying the refund. What can be done now?
Also to be mentioned that the closure date is effective from 31-01-2020 and not that from the Month of Original Application filed of July 2018.
“Please contact to GST practitioner”
what I need to do I cancelled GST Registration in 19/12/19 but still, ITC electronic ledger balance is showing which is ₹48480 in GST portal. I closed my business before 2 months. I started business in September in 2018 and I was doing return filing with tax Sep-18 to April-19. After April-19 I started to do nil return till October after October-19 return filed I requested for Gst cancellation on 19-12-2019 now what should I do sir/ma’am in this situation if GST registration has cancelled. please notified me
File GSTR-10 (Final Return) to settle the ITC claim
What about service providers? How can they claim the refund of ITC from credit ledger on cancellation of GST registration because turnover has been less than 20 lakhs?
We are such service providers who have accumulated close to 18000 in ITC due to lesser sales and more purchases in March. How can we claim the refund before applying for cancellation of the registration?
You can claim the refund of balance under ITC ledger by filing GSTR-3 for the concerned tax period.