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Gst for free items

bijo (Accountant) (302 Points)

04 December 2018

If any items provided to customers for a free of cost,ITC taken for the same has reversed or not?

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3 Replies

pritesh (CA Final student) (7101 Points)
Replied 04 December 2018

It has to bee reversed as per sec17(5).

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ananyabansalca@gmail.com (3 Points)
Replied 04 December 2018

yes ITC has to be reversed

Shivam RC (Student) (23683 Points)
Replied 04 December 2018

Yes...

INPUT TAX CREDIT ( ITC ) has to be Reversed for the items distributed by you to your customers on FOC basis since it is specifically BLOCKED u/s 17(5) sub clause ( h ) of the CGST Act 2017.

EXTRACT FROM THE ACT :

(h). "goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples."