Not utilizing itc

This discussion clarifies the consequences of not filing GST returns, even if your business is operational and registered for GST. Failing to file returns can lead to your GST registration being cancelled by the GST council, often after a Show Cause Notice (SCN). You may also face late fees for delayed filings and penalties if outstanding liabilities exist. Importantly, even if you've only made purchases and reflected Input Tax Credit (ITC), non-filing can still result in cancellation and potential penalties.