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Reversal of ITC

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MANJEET ROHILLA

23 Points Posted on 27 July 2020

dear Respondent

how to reverse the ITC availed in respect of goods which has been destr
oyed by fire, originally goods was purchased in raw form and destroyed good was in finished and semi- finished form please guide

Replies (3)

Quick Summary

This discussion addresses how to reverse Input Tax Credit (ITC) for goods destroyed by fire, particularly when the original purchase was of raw materials that were later processed into finished or semi-finished goods. The consensus is that ITC does not need to be reversed for raw materials already consumed in manufacturing finished goods that were subsequently lost or destroyed. This is due to a lack of specific provisions within GST law requiring such reversals in these circumstances.

Parvej akhtar

Professional

65 Points Posted on 27 July 2020

You have to reverese input taken in respect ef raw good used in finished or semi-finished goods

MANJEET ROHILLA

23 Points Posted on 27 July 2020

Then what about ITC in respect of other services consumed to got finished that raw material

Vijayprakash P

776 Points Posted on 27 July 2020

There is no provision at all in GST, which falls for reversal of credit of input tax of those goods (raw materials)which have been already consumed in manufacture of finished goods which subsequently got lost, damaged or destroyed. Therefore, No ITC is required to be reversed in such a case.