If any items provided to customers for a free of cost,ITC taken for the same has reversed or not?
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Gst for free items
Replies (3)
It has to bee reversed as per sec17(5).
yes ITC has to be reversed
Yes...
INPUT TAX CREDIT ( ITC ) has to be Reversed for the items distributed by you to your customers on FOC basis since it is specifically BLOCKED u/s 17(5) sub clause ( h ) of the CGST Act 2017.
EXTRACT FROM THE ACT :
(h). "goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples."
INPUT TAX CREDIT ( ITC ) has to be Reversed for the items distributed by you to your customers on FOC basis since it is specifically BLOCKED u/s 17(5) sub clause ( h ) of the CGST Act 2017.
EXTRACT FROM THE ACT :
(h). "goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples."
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