Reversal of itc on coal purchase

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tony (Querist)
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02 June 2026 Dear Sir,
Suppose a brick klin owner purchased the coal of Rs. 100000/- during the fy 2022-23 and he consumed coal only of Rs 50000/- during the fy 2022-23. and adjusted whole itc paid on purchase of coal of Rs. 100000/-, agaist out put tax liability of 2022-23 and 50000/- coal was in balance on 31/03/2023.
In 2023-24 he opted 6% slab without adjustment of itc. Whether he has to reverse the itc on balance on coal stock of Rs. 50000/- ?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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03 June 2026 You are required to reverse the ITC on the remaining stock of coal worth Rs. 50,000 because moving to the 6% slab typically precludes the further utilization of ITC, triggering the reversal provisions under Section 18(4) of the CGST Act.

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