Eye Share: ITC Reversal on Goods Written off or Destroyed – A new Pandora Box under GST!

GST introduced w.e.f. July 2017 was envisaged to be a bellwether of the notion of free flow of credit. Section 17 (5) of CGST Act, 2017 which prohibits ITC in certain situations despite goods or services being used in one's business, is an exception to this. Clause (h) of sub-section 17 (5) reflects one such scenario where a registered person needs to reverse ITC availed on goods ‘destroyed’ or ‘written off’.Mr. Gaurav Narula (Associate Director, Nitya Tax) and Mr. Ra...