GST reversal on cheese

Hi,

1)Cheese is my raw material. I have written off the cheese which are expired. Do I need to reverse the GST since it is not Lost,stolen. And if yes under which section

2) I used cheese into my final good but that final good is lost,stolen then should I reverse the GST(my contention is we should not reverse GST as raw material is USED in the final goods which could be called in furtherance of business)

 

Request suggestions under both the scenario

 

Replies (5)
Quick Summary
This discussion clarifies GST implications when cheese, used as a raw material, expires or is lost/stolen. According to Section 17(5)(h) of the CGST Act 2017, input tax credit (ITC) must be reversed for goods that are lost, stolen, destroyed, or written off. This applies even if the raw material was used in a final product that was subsequently lost or stolen, as the initial ITC on the raw material is deemed blocked.

In the both the case you have to reversal the input because both situation are fall of under section 17(5)
As per the Provision of Section 17(5) clause (h) of the CGST Act 2017, ITC is specifically Blocked for "Goods lost, stolen, destroyed or written of by way of free sample or gifts" .

Hence you have to Reverse your ITC availed in both the scenario by virtue of Section 17(5) clause (h) of the CGST Act 2017.
What is the GST Rate on Sweets ?
GST Rate on Sweets is 5%.

CGST @ 2.5%
SGST @ 2.5%
Thank You Shivam. Can you tell me what is the HSN Code of Sweets ???

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