Refund of unutilised Input Tax Credit (ITC) is allowed in cash on account of the closure of Business.
The case involves are fund claim filed by the petitioner for the accumulated unutilized ITC of INR 4.37 crores. There fund of this amount was claimed under Section 49 (6) read with Section 54 of the CGST Act. However, the said refund claim was rejected by the adjudicating and the appellate authorities on the ground that there are no provisions under the CGST Act to provide refund of ITC on closure of business.
