Reversal of ITC lying in Credit ledger when GST RC is cancelled

Under section 65(6) Audit observation we have been called upon to reverse  ITC lying in the credit ledger of our  RC that was cancelled su moto in Nov 21.  As we have no option to file GSTR3B after Nov 21, it is suggested by some that this can be done through DRC 3.  Is this correct view .  Will be obliged to get help here.

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Quick Summary
This discussion addresses how to reverse Input Tax Credit (ITC) lying in a GST credit ledger when a registration has been cancelled. The user was asked to reverse ITC after their registration was cancelled. It explores options like using Form DRC-03 for reversal, especially if GSTR-3B could not be filed post-cancellation. Guidance suggests filing an annual return or a final return depending on the reason for the remaining liability before making the payment.

1. If ITC remained due to difference in liability declared under GSTR-3B then file annual return first and then pay liability through DRC-03.

2. If liability was in respect of input belongs to stock held by you on date of closing then file final return and then pay liability.

thanks a lot fr the guidance

Welcome. Contact anytime for further help.

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