Goods lost by fire ,Charity and loss by theft Under GST
When Input Credit of GST Reversed?
GST paid (Input GST) is reversed in the following
• Goods Lost;
• Goods Destroyed;
• Goods Written off;
• Goods given as Charity;
• Goods given as Free Sample;
• Goods taken by Proprietor or Partner for personal
• Goods as may be prescribed.
No ITC for personal use
No ITC will be available for the goods/ services used for personal purposed and not for business purposes.
Free samples and destroyed goods
No ITC is available for goods lost, stolen, destroyed, written off or given off as gift or free samples.
Goods lost by fire
Under the GST law, you do not need to inform or take permission from any authorities for destroying the finished goods. However, as per Section 17(5) (h) of the CGST Act, 2017, input tax credit shall not be available in respect of goods destroyed. So, you have to surrender the credit taken in respect of inputs and input services used in the manufacture of goods destroyed.