ITC reversal must be done during cancellation ?

Hey! About ITC reversal when your GST registration is cancelled — here’s the quick scoop:

ITC Reversal on Cancellation:

• When GST registration is cancelled, any unutilized ITC balance in your electronic credit ledger must be reversed.

• This is because you cannot carry forward or use ITC after cancellation.

In your case (ITC ~ ₹1 lakh, cancellation in Mar 2023):

• You must reverse the ITC balance while filing your final GST return (GSTR-10).

• The ITC reversal will be shown as an outward liability (added to your tax liability).

• If you don’t reverse, the department can raise a demand later.

Amnesty scheme impact:

• Amnesty scheme generally helps with late fees or penalties but does not waive off ITC reversal compliance.

• So even if filing under amnesty, you need to reverse ITC balance properly.

Summary: