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Section 17(5)(h) CGST ACT

Dip Narayan (Deputy Manager) (767 Points)

03 December 2019

Can anybody elaborately explain me Section 17(5)(h) of CGST ACT

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5 Replies

Mohammad Talib (Job) (45 Points)
Replied 04 December 2019

Section 17(5)(h) reads as under:
[h] goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples;
it means all the ITC on purchases used in above specified goods shall be blocked and ITC can not be taken for the same.

Raksha (Student CA Final ) (397 Points)
Replied 05 December 2019

Section 17(5) is the blocked credit .
17(5)(h) states that if goods lost stolen or destroyed or written off or dispose of by gift or free sample
you cannot claim ITC.
i.e there is no further supply and government is loosing revenue in form of GST.
if ITC is already taken then reverse the same with 18% interest !
if you have paid GST on free supply then no need to reverse ITC

MANIT SINGH (student) (40 Points)
Replied 19 February 2020

Dear Sir,
If the goods are lost due to fire, then are we required to reverse the ITC claimed on those goods.

Dip Narayan (Deputy Manager) (767 Points)
Replied 20 February 2020

yes u have to .as this destroy material will not be a part of your production

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 12 June 2020

Section 17(5) of CGST Act, 2017 - Blocked Credits under GST. Though the one of the pillars of GST is free flow of credits in order to eliminate cascading of taxes, input tax credit is not available in respect of certain inward supply of goods or services as per Section 17(5) of the CGST Act,2017