Gst on samples drawn for testing

This query is : Resolved

Kaustubh Ram Karandikar (Querist)
Follow

18 March 2019 XYZ(Manufacturer) withdrawing samples of raw material, semi – finished goods and finished goods for Q.C. testing within factory. The samples get consumed / destroyed during testing. Is XYZ required to reverse proportionate input tax credit / pay GST on such samples?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 March 2019 QC testing is a part of manufacturing process ITC reversal not required.
Reversal required only when damaged in transit or through fire or natural calamities.

CMA Bhavya

CMA Bhavya (Expert)
Follow

18 March 2019 Hi sir,
In my view , you need to reverse those sample draw-which is consumed on site. because as per Sec. 17(5) (b)(iii)(h) of CGST Act 2017
goods lost, stolen destroyed , written off or disposed by way of gift or free samples
because after testing you are destroying those samples.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 March 2019 Testing will not fall under goods lost, stolen destroyed , written off or disposed by way of gift or free samples. Reverse not required.

Message likes : 3 times

CMA Bhavya

CMA Bhavya (Expert)
Follow

18 March 2019 Dear seetharaman Sir, Thank you for correction.

SHUBHAM SHARMA

SHUBHAM SHARMA (Expert)
Follow

22 March 2019 In my humble opinion also goods have been consumed not lost.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

rana andcompany

MAYUR

Tanuj Kumar Sharma

Aravind S

UPENDRAN YADAV

Subscribe Now

Gst on samples drawn for testing

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA