Treatment of Unutilised ITC at the Time of GST Registration Cancellation

[vaibhav agrawal]

At the time of cancellation of GST registration, after discharging the liability as required under Section 29(5) of the CGST Act, a balance of ITC still remain in the electronic credit ledger.

What will be the treatment of such unutilised ITC balance?
Will it lapse automatically upon cancellation, or is there any provision for its utilisation or refund?

Kindly clarify.

AI Summary

Unutilised input tax credit after GST registration cancellation raises the issue of lapse, utilisation, or refund of remaining credit. Treatment of unutilised input tax credit remaining in the electronic credit ledger after GST registration cancellation, after discharge of the liability under section 29(5) of the CGST Act, is the central issue. The query asks whether the balance ITC lapses automatically on cancellation or whether any statutory mechanism exists for its utilisation or refund. The discussion is limited to the post-cancellation status of credit and the legal consequences for any remaining ITC balance.