Want to zero reversal Electronic Credit Revsersal Ledger

[JIGNESH SITAPARA]

Dear Experts,

I wish to surrender my GSTIN. But some ITC shown in ELECTRONIC CREDIT REVERSAL AND RE_CLAIMED STATEMENT. Now, what to do ?? Can I surrender as it is or want to permanently reversal ? Please help me.

[Sadanand Bulbule]

You cannot surrender the GSTIN as it is--any ITC shown as re-claimed must be finally reversed and the Electronic Credit Ledger be made NIL before filing the surrender application.

Ref: Section 29(1) & (2), 18(4) and Rule 44 & 20

AI Summary

GST registration cancellation blocked until re-claimed input tax credit is finally reversed and credit ledger is nil Cancellation or surrender of a GST registration is stated to be impermissible where any input tax credit remains reflected as re-claimed in the Electronic Credit Reversal and Re-claimed Statement. The prescription is that such re-claimed ITC must be finally reversed and the Electronic Credit Ledger must be reduced to nil before submitting the cancellation application, with reference to section 29(1)-(2) and section 18(4) of the GST law and rules 44 and 20; the operative consequence is that the cancellation application should be deferred until the ledger is nil.