Reversal of the Input Tax Credit (ITC)
This query is : Resolved
18 November 2024
Sir,
We had an export sale of Rs. 1 crore, and the customer subsequently became insolvent. We filed a claim with ECGC and received Rs. 80 lakhs as compensation, resulting in a financial loss of Rs. 20 lakhs.
Our query is as follows:
Are we required to reverse the Input Tax Credit (ITC) claimed on raw materials used in manufacturing the goods for export, corresponding to the loss of Rs. 20 lakhs?
How does this situation affect GST compliance, and what is the reversal impact, if any, under GST law?
We seek clarification on the appropriate treatment of ITC and GST in this scenario.
We had an export sale of Rs. 1 crore, and the customer subsequently became insolvent. We filed a claim with ECGC and received Rs. 80 lakhs as compensation, resulting in a financial loss of Rs. 20 lakhs.
Our query is as follows:
Are we required to reverse the Input Tax Credit (ITC) claimed on raw materials used in manufacturing the goods for export, corresponding to the loss of Rs. 20 lakhs?
How does this situation affect GST compliance, and what is the reversal impact, if any, under GST law?
We seek clarification on the appropriate treatment of ITC and GST in this scenario.
18 November 2024
No need for reversal of ITC claimed on raw materials as it's zero rated supply.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR 2 Short Term gain & Long term gain
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Reporting Income under Section 44ADA
- ITR 1: Details for showing Exempt Income
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
