ITC LAPSED

This discussion addresses a client's Input Tax Credit (ITC) of £235,000 remaining in their electronic credit ledger from July 2018. Due to a significant liability, GSTR-3B returns were not filed subsequently. The core question is whether this ITC has lapsed and, if so, under which section of the GST law. Experts suggest that if returns haven't been filed since July 2018 and the registration was cancelled (and not restored), the ITC would likely be considered lapsed under Section 29 of the CGST Act.