Reversal of itc on stock loss

This discussion explains how to reverse Input Tax Credit (ITC) when stock is lost due to fire and an insurance claim is received. It details the process of calculating stock value and tax, and how to correctly report the ITC reversal in your GSTR 3B return under the ineligible or reverse ITC column. Crucially, it advises confirming that tax was indeed paid on the lost stock before proceeding with the reversal.