PATHANI LAW...SEC 17(5)(h) of CGST ACT
My clients sugar of rs 50 laks destroyed in flood. His N P is hardly 2%. To cover this loss, he has to do turnover of rs 25 cr. The Govt is not going to pay him a single rupee which it should do to support him.
Now the law will reverse his I T C of rs 245000 plus interest plus penalty.
Is it not a Pathani Law? We should point out this issue to F M.
Kishor.
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sec 17(5)(h) cgst
Replies (7)
I .don't think ITC reversal is mandatory in case goods destroy due to natural calamities (Flood) , but if department asking .for reversal , then it's rediculous. Infact govt should support the business giving them relief grants & support them
unfortunately, as per law it looks like reversal is required.
i hope that is not the intention of the law though
the wording of sec 17 (5) requires to be read strictly. So goods lost due to fire or natural calamity requires ITC reversal sadly.
i hope there should not be any notice issued in this line. In case it is then it is against the nature of justice
In my opinion, you can reverse under protest and file appeal if you have received any notice. So that if the outcome is favourable that would help.
yes,instead of reversal. reversa under protest would be safer one as mentioned above
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