Electronic credit balance and gst cancellation

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This query is : Resolved

Quick Summary

If you're closing your e-commerce business and need to cancel your GST registration, you must address any credit ledger balance. This involves reversing input tax credits on any remaining stock. You can settle this liability either when filing your final return, directly when applying for cancellation, or by using Form DRC-03.

KidsWonderland

KidsWonderland (Querist)

06 December 2023 Hi! I have a gst number which i took this year on April month for ecommerce business. But now i want to register for cancellation as from last 4 months i have no sales and i am closing my business. I have filed all returns including NIL return. But I have credit ledger balance in my account. So Please suggest can i register for cancellation or not? what should i do now. Also i have some stock left.
Thank you.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

06 December 2023 If you have some stock left on which input has been claimed, you have to reverse the inputs held in stock as on the date of cancellation.

KidsWonderland

KidsWonderland (Querist)

06 December 2023 What is the procedure to pay gst for the remaining stock?