Regarding Cancellation of GST Registration.

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This discussion addresses whether GST registration can be cancelled if export of IT services falls below the £20 lakh threshold. It clarifies that cancellation is possible. A crucial point highlighted is the mandatory adjustment of Input Tax Credit (ITC) on all stock, including finished goods and capital assets, as per Section 29(5) of the CGST Act and Rule 20. This involves debiting your ledger with the ITC claimed or the output tax liability, whichever is higher, before filing your final return.

Jaswinder singh

Jaswinder singh (Querist)

16 March 2024 Respected Colleagues
If Person GST registration and having Export of IT services to foreign country in AY 2023-24 of Rs 25 Lakhs but now in AY 2024-25 Export of IT services to foreign country is only Rs 11 lakhs till march till date.

My query is GST registration is still mandatory to continue even below threshold limit of Rs 20 lakhs???
Or We eligible to cancel from immediate effect?

RAJA P M

RAJA P M (Expert)

16 March 2024 Yes, The Person cancel his GST registration.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

16 August 2025 One critical aspect that often gets missed in discussions on GST registration cancellation is the mandatory adjustment of Input Tax Credit (ITC) on stock — including inputs, semi-finished, finished goods, and capital assets. This is governed by Section 29(5) of the CGST Act and Rule 20 of CGST Rules.
Upon cancellation, you must debit the electronic credit or cash ledger with:
The ITC claimed on such stock, or
The output tax liability that would arise if the stock is treated as sold — whichever is higher.
CBIC GST
This ensures that you cannot carry forward ITC on unsold or unused stock. Verifying and adjusting this amount is essential for GST compliance before filing the final return (GSTR-10).

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