ITC on goods sold at lower rate than purchase rate

Akshay Jain (Tax Consultant) (1024 Points)

21 August 2022  
Dear Sir, A dealer has purchased goods. He rented this goods many times but now at the time of sale value of these goods are very lower. I.e. purchase @ 5000 and Selling @ 800 due to rented many times. now what to do. is ITC disallowed or allowed or what