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GST ITC REFUND CLAIMS CLOSURE OF BUSINESS

02 April 2021

Dear Friends,

What are the procedures to get available ITC refund in case of closure of business? How many days it will take? refund mode DD or NEFT to Tax Payer's bank account? Is it possible to transfer the balance ITC to another new entity (am partner for that entity)

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3 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 02 April 2021

There is no such procedure as refund of ITC at closure of business . Rather ,you have to pay tax on any closing stock ( raw material or finished goods ) that you have at your principal or additional place of business . You can use your ITC to discharge that liability . Excess ITC would lapse . All stock details have to mentioned in last return that you would file ( GSTR-10).

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Mohanraj J (1162 Points)
Replied 02 April 2021

Sourav Bhai, this is service providing business, so there is no any stock. We have ITC against capex ( JCB machine )Purchases about 10 Lakhs.

Mujeeb Doi (309 Points)
Replied 02 April 2021

According to me, refund of ITC from ECL is available only in selected prescribed cases, and the refund of the same is not available at the time of closure of business