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 have ITC credit on purchases but have stopped operations and there has been no sale. Can we apply for cancellation of GST registration? What do we with the ITC credit?
You can Claim as refund for Existing ITC credit
Dear Sir
My registration has been cancelled and i have Rs 5lacs as ITC and Output tax as Rs 32lacs. Can i transfer my ITC to my another GST Number having Different State?
No Sir, Currently this facility is allowed in Cash Ledger balance only in PMT-09 form.
we are purchase from party 2018 Jan. and we claim input and all ok but now the GST department
telling you paid tax for avail GST input due to cancel GST form the seller for suomoto from 2017.
but the party filed a return up to march 2019.
“Please consult GST practitioner for the same”
we have not taken credit of gst in gstr 3b, we have taken purchase in our books. and not gst registration is surrendered paying tax in last period. how can we take refund of gst not claimed in gstr 3b
By filing RFD-01 Form