Question ID : 36934

Surrender of GST no

A Person had obtained GST no but lateron realised he does not require it. He is having GST paid stock with him. Is it necessary to make stock Zero while applying for Cancellation of GST no

Answer ID : 76210

There is no such rule to reduce the Stock to zero for cancellation of GST Registration, however, if any Input Tax Credit was availed on the closing stock on the date of cancellation, same shall be reversed from the ITC Ledger, and if the ITC Ledger balance is not sufficient, it shall be paid in Cash. Also any excess balance after adjustment in ITC Ledger shall lapse.

Answer ID : 76239

No, there is no such requirement of making stock zero, but the ITC (if availed) in GSTR 3b has to be reversed at the time of applying for cancellation of GST no.

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