GST Refund on ITC
IF A PERSON CLOSES HIS BUSINESS & ALL THE STOCK REMAINING IS SOLD.
AND THE ITC CLAIM WHICH WE HAVE TAKEN ON FIXED ASSET REMAINS AS CARRIED FORWARD, THIS ITC ON FIXED ASSET CAN BE REFUNDED?
IF YES CAN YOU PLEASE HELP ME, HOW TO APPLY FOR REFUND.
No. You can not take refund of such unutilised credit. However, as per rule 44 , such credit will be reversed on the bases of useful life of capital goods and to be shown as liability in gst returns.
Agree with the opinion of CMA Deepa Tanna.
Refund of unutilised ITC is governed by Section 54(3). Unutilised ITC in the question asked shall be not be allowed as per the given section.
Moreover, as per Sec 29(5) read with Rule 44 an amount as prescribed under the said rule shall have to be paid.