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sec 17(5)(h) cgst


Kishor Lulla   18 August 2019

Kishor Lulla

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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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Pankaj Rawat (GST Practitioner)     18 August 2019

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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

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Uttam (employee)     07 September 2019

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unfortunately, as per law it looks like reversal is required.

Dasarath singh Rajpurohit   07 September 2019

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i hope that is not the intention of the law though

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Uttam (employee)     07 September 2019

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the wording of sec 17 (5) requires to be read strictly. So goods lost due to fire or natural calamity requires ITC reversal sadly.

Dasarath singh Rajpurohit   07 September 2019

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i hope there should not be any notice issued in this line. In case it is then it is against the nature of justice

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Uttam (employee)     07 September 2019

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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.

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Dasarath singh Rajpurohit   07 September 2019

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yes,instead of reversal. reversa under protest would be safer one as mentioned above


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