ITC Reversal or Not

241 views 1 replies
Good Afternoon
Please advise in this case:

The entity is engaged in ice cream distribution has different GST Registration no. Receive Ice Cream from its Head Office (in another State) and further sold it to Big/small distributors in the state.
Some of its ice cream sold if expired/got infested with fungus, it compensates the distributor of loss by issuing them credit notes for the ice cream lost(verified by some authorised person) without giving any GST effect of the same.
I want to know whether there should be any ITC reversal on the goods lost as credit notes is issued for the same and no consideration towards it will be received in future for expired ice cream.

Thank You
Replies (1)
Yes as per Section 17(5) ITC need to be reversed.
& Credit note need to be issued as per Section 34 of CGST Act

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details