Un utilised ITC not any sale Want GST registration surrendered .

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This query is : Resolved

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If you've discontinued your business and wish to surrender your GST registration, but have unutilised Input Tax Credit (ITC), you can proceed. While you can surrender the registration, you'll need to file a final return (GSTR-10) within 90 days of cancellation approval to account for the unused ITC. There should be no objection from the department regarding the cancellation itself.

sham Gaikwad

sham Gaikwad (Querist)

03 June 2022 Sir
I had business of cold press oil mil .I have purchased some raw material under using my GST number .but I have not make any sale of oil during period .Now I have files only nil returns due to nil sale .Now i want surrendered my GST registration due to discontinue of business.
But there is unutilised itc available of Rs 9000 .Can I surrender GST registration ?
Will officer raise any query regarding my unutilized ITC ? Purchased material has been perished.

R. B. Yadav (CMA, LLB)

R. B. Yadav (CMA, LLB) (Expert)

03 June 2022 Hi,
Because you have not made any sale of raw material purchased, you have to reverse the input credit availed on raw material. At the time of filling of surrender application, you can reverse it.

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sham Gaikwad

sham Gaikwad (Querist)

03 June 2022 Thanks sir , But I have not availed ITC it is unutilised.Then how to reverse itc while surrendering registration? pls explain me.

Udaya Chandran

Udaya Chandran (Expert)

03 June 2022 There is no question of unutilized ITC. There will be no objection from the department to cancel your GST registration.

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sham Gaikwad

sham Gaikwad (Querist)

03 June 2022 thanks ,then I can surrender my registration with unclaimed ITC .

CA Altamush Zafar

CA Altamush Zafar (Expert)

03 June 2022 You can surrender. At the time of filing of cancellation application you can also reverse the ITC. But now since Interest is only after utilisation whether you reverse ITC or not doesn't matter. You can straightway cancel with or without reversing ITC - your choice. No adverse implication in any of them.

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

04 June 2022 You can surrender your registration now. And for unutilised credit you have to filed a final return in GSTR-10 within 90 days of approval of your cancellation.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

28 October 2026 Key point missed: since the raw material perished, its ITC is blocked u/s 17(5)(h) (goods lost/destroyed) and must be reversed through GSTR-3B Table 4(B) or DRC-03 before cancellation; otherwise Sec 29(5) requires paying ITC on stock held on the cancellation date in GSTR-10. As the credit was never utilised, no interest is due (Sec 50(3)).

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