GST Refund on Capital goods on itc Reducing 5% per quarter when cancelation of GST number

On cancellation of GST registration, ITC on capital goods is not refundable. As per section 29(5) read with rule 44, the taxpayer has to reverse/pay the ITC attributable to the remaining useful life of the capital goods, taking useful life as 5 years (60 months), or the output tax payable on such goods, whichever is higher. Details are to be given in REG-16, and GSTR-10 is to be filed after cancellation.