One of our clients a Proprietorship firm (mandatorily transitioned from DVAT to GST) wants to surrender their GSTIN in Sep 2018 as they have ceased business, and have issued no invoices in FY 2018-19.
They have the following items in their books:
a) Stock purchased (7yrs ago) against C-Form - now unsaleable
b) Machines (purchased 7yrs ago under DVAT)
c) Office Furniture (purchased 7yrs ago under DVAT)
They sold all goods purchased under GST regime on which ITC was available.
In Electronic credit ledger they have IGST credit of Rs 5000 and Rs 400 each for SGST & CGST.
IGST ITC balance arose as they initially chose not to setoff ITC against output in Aug, Sep and Oct 2017 as suppliers had not uploaded Invoices and hence paid output tax via Electronic Cash.
They have zero sales in 2018-19.
They continued to receive some ITC on Services from Bank and Telephone Service provider in FY 18-19.
Assuming Client opts to file Form Reg-16 with Effective date 15th Sep 2018, my questions-
1. Does client need to pay GST on stock in hand, machinery and furniture?
2. If yes to Qn1 then would it be advisable to issues invoice in Aug 2018 showing sale of machinery as Scrap, Furniture and sale of stock / write off.
3. Can they avail ITC in FY 18-19, if they issue some invoices in Aug 2018?
4. Can they avail refund of the IGST ITC in Electronic Credit ledger?
CAclubindia
