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.

To resolve these operational challenges effectively, leverage Power Query for automated GST and multi-entity Tally/SAP reconciliations, establish strict tax hierarchy workflows for Sections 194Q/206C(1H), and enforce a standardized RACM matrix for IFC compliance; if you intended to join the author's peer network, reach out directly to the email provided in the post.

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details