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GST refund when closing business

02 December 2019

Can a business which is closing down claim refund of GST amount showing in Electronic Credit Ledger. If yes then what is the procedure and what are the documents to be submitted. Note: GST registration is already cancelled and the business is not into import or export.

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (128029 Points)
Replied 02 December 2019

As per Your query.,

You are not a import and export process... good.

What about Your supplies tax rate with inwards tax rate...?

If Your purchase tax rate more than sales tax rate then You can claim refund of unutilized Input Tax...

For ex:

if Your sales items tax rate 5%
and Purchase have tax rate 18% then have 13% excess ITC in your credit ledger.
You can claim refund for the ITC...

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ca praveen jain (partner) (107 Points)
Replied 02 December 2019

Refund allowed only in two case..
1. export of goods or services
2. invert duty structure
so u are not allowed to get refund of ur accumulated it....

1 Like

manjunath (errrr) (26 Points)
Replied 27 December 2019

The business (Private Limited Co) has not made any sales and only incurred expenditure and now wanted to close the business, can it claim refund of excess balance in credit ledger??

Kindly suggest

RAJA P M ("Do the Right Thing...!!!") (128029 Points)
Replied 27 December 2019

Originally posted by : manjunath
	The business (Private Limited Co) has not made any sales and only incurred expenditure and now wanted to close the business, can it claim refund of excess balance in credit ledger?? Kindly suggest