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GST - unutilised ITC

12 June 2022

I have unutilised balance in electronic credit ledger.... and now I filed for cancellation of my registration

Now, should I file for refund of such unutilised ITC or should I reverse such unutilised ITC

reversal of ITC means adding it to output tax liability only, right??

please clarify....

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29 Replies

Parv Kumar (Student) (4037 Points)
Replied 12 June 2022

You have to file Final return after cancellation of your GST and pay tax on your stock in hand.

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 12 June 2022

You should have filed refund application for unutilised ITC in electronic credit ledger .

After receiving refund, you should have applied for cancellation of registration.

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 12 June 2022

You can't apply for refund except in case of inverted duty structure.

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 12 June 2022

ITC refund application can be filed

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 13 June 2022

Application can be filed but there is no provision in law
Also a taxable person whose GST registration is cancelled or surrendered has to file a return in Form GSTR-10 called as Final Return. This is statement of stocks held by such taxpayer on day immediately preceding the date from which cancellation is made effective. This return should be filed within three months of the date of cancellation or date of order of cancellation, whichever is later.

This return is intended to provide details of ITC involved in closing stock (including inputs and capital goods) to be reversed/ paid by the taxpayer.

You have to pay tax on your closing stock and as per my view if your stock is nil there was no chance of ITC.

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 13 June 2022

The queriest didn't say anything about stock.

She said that unutilised ITC in electronic credit ledger .

Go to services menu there is an option RFD

Anantha narayanan B (30 Points)
Replied 13 June 2022

ITC refund cannot be made.A question will be arised for details regarding u r closing stock if application for refund is made.It is better At the time of making final return or filing monthly return make a invoice to some related party to the extent of ITC in electronic credit ledger and transfer the ITC to them.

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CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 13 June 2022

But ITC is required to reverse on stock

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Meenakshi Gandhi (83 Points)
Replied 13 June 2022

Agreed with rashmi mam and anantha.

@ Eshwar Reddy , stop making useless replies on queries.

Anantha narayanan B (30 Points)
Replied 13 June 2022

At any cause ITC refund will not be made.If application for refund is made Department will raise a question of closing stock.If refund application is not made,at the time of filling final return you have disclose the closing stock and pay tax on closing stock either through ITC or by cash.Best way as per my view is to transfer the ITC by making an invoice to a related party by filling monthly return or final reurn

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Uma Srilekha Gadepalli (255 Points)
Replied 13 June 2022

Thanks a lot everyone for your valuable suggestions....
there is no kind of stock that's lying with us... business is nil from the past year, so we filed an application for cancellation and we have that unutilised balance in credit ledger.... just wanted to know about that....

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