Can the taxpayer claim refund of ITC in the credit ledger balance where the input tax credit is more than than the amount required to be reversed? If yes, how to claim?
Example trader purchased goods for ₹ 10,00,000 paying ITC @18% and he couldn't sell the same with value addition but sold for only ₹ 9,00,000 and discharged tax liability n filed returns. He also had some service inputs of ₹ 10,000. Now the dealer wants to surrender registration, in this case can he get the refund of ₹ 18,000 ( on goods sold for loss) plus ITC on Services of ₹ 10,000. If yes, how can he claim ?
Exploring Refund Eligibility for Input Tax Credit Post-GST Cancellation: Is It Possible? A taxpayer inquired about claiming a refund on the closing balance of Input Tax Credit (ITC) upon cancellation of GST registration. The example given involved a trader who sold goods at a loss and had additional service inputs, questioning if a refund could be claimed. One respondent stated that ITC is not available post-cancellation, and any surplus credit must be reversed. Another respondent highlighted that refunds are typically limited to specific scenarios and questioned the feasibility of such a refund under current laws. A third response referenced a past court case where a refund was granted, suggesting potential entitlement under certain conditions. (AI Summary)
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