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

[JIGNESH SITAPARA]

Sir, how can transfer to electronic credit ledger ?? Can you please guide me. 

[Shilpi Jain]

Its a statement that provides some information to department. You can also try to surrender the GSTIN and in case the department insists that it should be reversed then you can avail it in table 4A5 disclose in 4D1 and reverse in 4B1.

Its is not compulsory to reverse the balance in that ledger

AI Summary

Input tax credit shown in Electronic Credit Reversal statement: must it be reversed before GST registration cancellation application? The discussion addresses whether input tax credit reflected in the Electronic Credit Reversal and Re-claimed Statement must be reversed before applying for cancellation (surrender) of a GST registration. One view states the statement is informational and cancellation may be attempted without mandatorily reversing such balance, with any required adjustment to be made through return disclosures (including reversal and reporting of re-claimed/reversed ITC). Another view asserts that, on cancellation under section 29 read with section 18(4) and rules 44 and 20, any re-claimed ITC must be finally reversed and the Electronic Credit Ledger must be reduced to nil as a precondition to filing the cancellation application.