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
My GSTIN was cancelled during August 2021 by Deptt. due to the non-filing of pending returns, which came to our knowledge only during Nov.2021. On appeal, GSTIN was again validated on Nov.21. Sir, how can I claim ITC earned on my purchases during Sept./Oct,2021?
Once dept. validated your GST no. you can claim previous period ITC in your upcoming GSTR 3B
How can claim the refund of balance lying in Electronic credit ledger.The provision regarding refund under inverted duty structure and export not applicable in my case.
“When the taxpayer wants to claim a refund for any reason, for which there is no specific refund application available in the refunds section. Then taxpayer needs to click on “Any Other” ground of reason and specify his reason in the refund application while filing a refund.”
Dear Sir/Madam,
I have decided to wind up our shop due to losses, we have also stock of 7-8 lacs. Can I claim a refund of my ITC?? without transferring of stock or without selling of Stock??
No first you have to file GSTR 10 (final return), then only you can proceed further
I have Cancelled my GSTN but there has been a credit in my Credit Ledger, how can I now reverse my Balance ITC in Ledger even after cancellation of my GSTN
File GSTR -10
Hello,
I had a business registered with GST since April 2019 I have not filed any return since the business was closed, my ITC in the credit ledger is around 6 lacs is there any way possible that I can claim the refund or encash the balance ITC.
Please email me with respect to the matter mentioned.
Regards
Sir, Have filed your GSTR 10 for the same?