3 Points
Posted on 17 September 2026
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.