accumulated ITC -common credit - NOT UTILISED -SURRENDER OF GST registration - treatment

[Karuppannagounder Marimuthu]

A registered person (partnership firm) wants to surrender their registration due to business closure. However, accumulated common credit since 2019 to date - ITC to the extent of CGST Rs. 15540 and SGST RS.15540. It represents ITC on bank charges. Registering Authorities ask to remit the amount to cancel the registration. How to represent?

[Padmanathan KV]

You can reverse the credit using DRC-03. 

AI Summary

Accumulated input tax credit reversal required on GST registration surrender; reverse common ITC using form DRC-03 before cancellation. Surrender of a GST registration requires addressing accumulated input tax credit that remains unutilised; common ITC (for example, on bank charges) must be extinguished or reversed, and the practical mechanism to do so is to reverse the credit through the prescribed form DRC-03 before registration cancellation.