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Gst itc on destroyed goods

Eldhose MV (Associate) (63 Points)

06 February 2019

Hi All

Our is a trading concern dealing in sale of motor pumps . Few pumps purchaed were destroyed completely without any further use and can be sold as scrap only. In this case are we required to reverse the ITC already awailed on the purchase of these motor pumps?

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11 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14163 Points)
Replied 06 February 2019

As per section 17(5) (h) of the CGST act 2017 Goods destroyed , you can not claim ITC and if you availed then reverse the same .

please confirm with others also.

vaibhav (student) (253 Points)
Replied 06 February 2019

what would be the case, if certain inventory write off from the books due to theft / shortage.

Ajay Kumar (44 Points)
Replied 06 February 2019

As per section 17(5) (h) of the CGST act 2017 goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; you can not take credit in these case.

Sanjiv Rajpoot (3430 Points)
Replied 06 February 2019

no itc available

2 Like

pritesh (CA Final student) (7101 Points)
Replied 07 February 2019

No itc Not available as per sec 17(5).

Vinod Babu (24191 Points)
Replied 07 February 2019

input tax credit shall not be available in respect of good lost, stolen, destroyed written off or disposed of by way of gift or free samples

Hemanta Samal (93 Points)
Replied 07 February 2019

ITC can not be claimed if already claimed than u have to reverse it as per section 17(5)(h) of CGST Act, 2017

Vinod Babu (24191 Points)
Replied 07 February 2019

ITC should be reversed for the goods destroyed.

Ankur Mulchandani (33 Points)
Replied 07 February 2019

As per the section- 17 (5) (h) of the CGST Act 2017,based on block credit states goods lost, stolen, destroy, written off or disposed by way of gift or free samples. you cannot claim ITC.
If you have wrongly claimed ITC it need to reverse at the same.

1 Like

Ram Vishwakarma (Article assistant) (123 Points)
Replied 17 April 2019

Hey Hello Guys,

One doubt is there, Supose we are dealing in the Networking Product ( Wifi Router ), Now we have purchase some Umbrella, Wrist bands & stress ball and distributing these are free ( as a Promotion / Marketing ).

Do we have to reverse the ITC on these purchase under this cluase

"goods lost stolen destroyed written off or disposed of by way of gift or free samples"

Please guide us with the brief explanations

Becouse in my understanding we only have to reverse the ITC for the Netwotking Product is distributed as a Free / Gift / Stolen / Write off