When sale price of a product is less than purchase price, is ITC to be reversed ?
Under which section / rule ?
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Reversal of ITC when goods sold at a price less than its purchase price
Replies (4)
Quick Summary
No, in my view
Yes, when the sale price of a product is less than the purchase price, Input Tax Credit (ITC) is required to be reversed. This is governed by Section 17(2) of the Central Goods and Services Tax (CGST) Act, 2017. It specifies the conditions under which ITC needs to be reversed, and one of those conditions is a reduction in the value of supply
@ AR Rahman sir , everybody telling reversal reversal actually it mean here what action
Pls once Refer sec 17(5) of CGST Act 2017
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