Kind attn: Forum experts
I have stock of a food product taxable @ 18%, that was purchased in VAT regime against C-Form, so no ITC was availed.
Stock has expired and I can't get replacement from manufacturer, so I am writing off the expired stock.
I am clear that Section 7(1) (c) CGST Act read with Point 1 of Schedule I does not apply to my case, since ITC was not availed.
Will Section 7 (1) (d) CGST Act read with Point 4 (a) of Schedule II apply?
i.e. Is Tax payable on write-off of expired goods even if no ITC was availed?
Relevant portions are mentioned below for ready reference.
Sec 7 (1) d reads
For the purposes of this Act, the expression “supply” includes––
(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.
Point 4 of Schedule II, reads....
Transfer of Business assets
a) where goods -forming part of assets of business -are transferred or disposed off -by or under the directions of the person carrying on the business -so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person;
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