GST reversal on cheese

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.