We want to surrender gst number. We have shown closing stock in 31 March 2024 Balance sheet and having cash credit both ledger balance. Please advi

Yes, while applying for GST surrender, you need to consider the following aspects related to closing stock and GST implications:

1. Reporting of Closing Stock in GST Cancellation (Form GST REG-16)

• Since you had closing stock as on 31st March 2024, you must declare it in the GST cancellation application (Form GST REG-16).
• As per Section 29(5) of the CGST Act, before surrendering your GST number, you need to reverse the ITC availed on the closing stock (including raw materials, semi-finished goods, and finished goods).

2. Filing Final Return (Form GSTR-10)

• GSTR-10 (Final Return) is mandatory and must be filed within 3 months from the date of cancellation approval.
• In Table 16A of GSTR-10, you must report the closing stock on which ITC was availed and pay the applicable tax (either ITC reversal or tax on stock value, whichever is higher).

3. Cash Credit Ledger Balance

• If there is a balance in the electronic credit ledger, it cannot be refunded but can be adjusted against the ITC reversal liability on closing stock.
• If there is a cash balance in the electronic cash ledger, you may apply for a refund in Form GST RFD-01 before filing GSTR-10.

4. Tax Liability on Closing Stock

• You must pay GST on closing stock at the time of cancellation, based on whichever is higher:
• a) The ITC availed on such stock or
• b) The tax on the transaction value (market price of stock).