ITC Reversal or Not

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
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details