Deepak Gupta | Sep 11, 2021 |

ITC on inputs used in manufacturing expired cakes & pastries is not admissible & required to be reversed: Gujarat AAR

Question

Whether or not there is requirement for reversal of input tax credit on goods used as raw material in manufacturing of expired cakes & pastries that were kept in display for use in course or furtherance of business?

Ruling

As per Section 17(5)(h) of CGST Act

17(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub- section (1) of section 18, input tax credit shall not be available in respect of the following, namely:—

….

goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and

ITC on inputs used in manufacturing expired cakes & pastries is not admissible and required to be reversed.

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Tags: AAR Gujarat, GST, Ineligible Input Tax Credit Under GST, Ineligible ITC Under GST, Input tax credit, ITC

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Name: Deepak Gupta

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CA Deepak Gupta,is Co-founder of Studycafe. He is Microsoft Office Specialist and Corporate Trainer of AI Tools, Microsoft Excel. He is Finance Influencer having more than 250K followers on Social Media. CA Deepak Gupta, is Having more than 14 plus years of experience, and he has Worked with best brands Like, Hero, Wipro, Ericsson before Starting Studycafe. He has Trained more than 20000 Persons in Microsoft Excel, PowerPoint, Power BI, Google Sheet, Google Forms and Other Tools.

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