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Input GST when Closure of Private Limited Company

NEERAJ JINDAL (91 Points)

18 March 2024

I have a Private Limited Company incorporated in August 2021.

it was supposed to be a SAAS platform but things didn't worked out and I am planning to close the company.

I have a GST Input credit of 1.8 Lakh approximately.

Can we withdraw the GST Input Credit amount or what other option is available?

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3 Replies

Money Money (383 Points)
Replied 18 March 2024

Refund of Unutilized Input Tax Credit (ITC):

If you have accumulated unutilized Input Tax Credit (ITC), you can claim a refund. This typically occurs when the tax paid on your purchases (inputs) is higher than the tax on your sales (output supplies).

You can apply for a refund of this unutilized ITC at the end of any tax period.

The conditions for claiming this refund include:

The goods or services purchased must be used for business purposes (not personal use).

You must hold valid tax invoices or debit notes as evidence of payment towards the purchases.

The supplier must file these invoices in Form GSTR-1, and they should appear in your Form GSTR-2B.

Keep in mind that no refund is allowed if the goods exported out of India are subjected to export duty or if the supplier avails of drawback or claims a refund of integrated tax paid on such supplies1.

Withdrawal from Composition Levy:

If you are currently under the Composition Levy scheme, you can withdraw from it.

To do so, follow these steps:

Access the GST Portal.

Log in with your valid credentials.

Click on “Services,” then “Registration,” and select “Application for Withdrawal from Composition Levy.”

Once you withdraw, you’ll need to file a statement (Form GST ITC-01) containing details of the stock of inputs and semi-finished or finished goods held in stock on the date of withdrawal

RAJA P M ("Do the Right Thing...!!!") (127167 Points)
Replied 18 March 2024

@ Mr NEERAJ JINDAL,

In general view, it's No.
You can't claim refund for the Input Tax Balance.

It will be reversible at the time of close/cancell the GSTIN.