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ITC INPUT CREDIT AT THE TIME OF CANCELLATION OF REGISTRATION

06 March 2022

What to do if a registered taxable person wants to cancel his registration and having his ITC Input Credit balance?

Will this ITC credit balance will be transferred to him to his account after cancellation?

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8 Replies

Imthias ahamed Kormath (910 Points)
Replied 06 March 2022

Proper time is December of a year, because in this month annual return filed. Before six months this month u will b settle all ITC curent and previous years also as per section 73and 74.

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 06 March 2022

Apply GST ITC refund and then apply for cancellation of registration

renji bhasuran (31 Points)
Replied 06 March 2022

Reverse ITC through GSTR 3B,after cancellation

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 06 March 2022

ITC ledger need not be reversed..Apply for refund and after receiving refund you may apply for cancellation

renji bhasuran (31 Points)
Replied 06 March 2022

If any stock in hand,it must be reversed through GSTR 3B,DRC03 or through Final return.There is no stock,but ledger balance available,no need to reversal. But refund is not allowed

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Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 06 March 2022

Accumulated ITC can be claimed as refund..

One can file application for refund along with proper documents

renji bhasuran (31 Points)
Replied 06 March 2022

ITC refund available only in the case of Zero rated supply & inverted duty structure

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Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 06 March 2022

Pass a service invoice to known people & transfer the credit to them and claim from them ..

Better to apply for Refund only .. Online application can be filed & after that you need to visit the GST Office along with Input invoices & GSTR-2B