Can a business claim a cash refund of GST input credit when it shuts down? The answer isn’t as simple as the balance showing in its electronic credit ledger. Section 54(3) of the CGST Act generally restricts refunds of unutilised ITC to specified cases, principally zero rated supplies and inverted duty structure. Courts have differed on whether unused credit can be refunded in other circumstances. In the SICPA case, a Sikkim High Court single judge allowed a refund of ₹4.37 crore after closure. The division bench later reversed that decision. The larger issue is whether Section 49(6) independently permits a refund or whether Section 54 exhaustively governs the available routes. An unused ITC balance is not automatically a refundable asset. The reason it remains unused, the applicable statutory provision and the relevant judicial ruling all matter. #GST #InputTaxCredit #GSTRefund #IndirectTax