If any items provided to customers for a free of cost,ITC taken for the same has reversed or not?
3 Replies
pritesh
(CA Final student)
(7101 Points)
Replied 04 December 2018
It has to bee reversed as per sec17(5).
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."
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."
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