How Can a Trader Utilise Approximately ₹1.20 Crore of Accumulated GST ITC?

Quick Summary
A trader has accumulated a significant ₹1.2 crore in GST Input Tax Credit (ITC) due to selling goods at heavily discounted prices. The current output GST liability is insufficient to utilise this credit within a reasonable timeframe. This discussion explores legally permissible options for the trader to either utilise, transfer, or claim a refund of this substantial accumulated ITC, rather than letting it remain blocked.

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This client is engaged in the trading of taxable goods.

During the past period, the client was selling goods at very low/highly discounted prices (which were later claimed by brands), resulting in relatively low output GST liability compared with the GST paid on purchases.

Consequently, substantial ITC has accumulated in the electronic credit ledger. The approximate balance is 1.2 crore

He is continuing the same/similar trading business, but the present output GST liability is insufficient to utilise the accumulated credit in a reasonable period.

I would like to understand whether there are any legally permissible ways to utilise, transfer or obtain a refund of this accumulated ITC, rather than allowing the credit to remain blocked for a prolonged period.

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