Regarding Cancellation of GST Registration.
This query is : Resolved
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?
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?
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).
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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