ITC reversal Mandatory

This discussion clarifies the mandatory reversal of Input Tax Credit (ITC) when goods are damaged. According to Section 17(5)(H) of the CGST Act, ITC is not available for damaged goods. Therefore, the recipient must reverse any ITC already claimed on such items, potentially with interest. The timing of this reversal, especially if GSTR-3B has already been filed for the relevant periods, is a key consideration.