Is gst payable on expired pre-gst goods on which no itc was claimed/available?

260 views 4 replies

My client is a distributor of packaged food products, which carry a pre-printed Best before date.

Client has stock of goods acquired against C-Form from manufacturer on which no ITC was available.

Said goods were already expired before GST transistion but Client chose to not write-off as they were hoping manufacturer would consider return and replacement.  This food product is taxable @ 18% under GST.

In 2017-18 the Proprietor of Manufacturing firm passed away and there is no scope to exchange goods.

Now my Qns are as follows:

  1. If Client writes off these goods, do they need to pay GST on the same?
  2. If yes/no, please quote the specific act & section which clarifies taxability/exemption.

 

 

Replies (4)
No you are not required to pay gst..

As per section 17(5) ITC need to be reversed in case of good stole, written off. or disposed off..on which you have claim ITC before..

in your case you have not purchase this goods in gst period..it has been purchase before.so no need reverse..

as per my opinion..pls confirm with others one tym

Thank you Pritesh for the crisp explanation.

I eagerly await alternate/additional opinions from our contributors/experts.

As Per Section 7 (1) (c) and Schedule I 

In Your Case No GST Liability arise because Stock is a your business assets in which you have not claimed any ITC 

@ Ravi  @ Pritesh

Am concerned if Section 7 (1) d  CGST Act read with Point 4 of Schedule II will apply?

Point 4  Transfer of Business assets

a) where goods  

  • forming part of assets of business
  • are transferred or disposed off
  • by or under the directions of the person carrying on the business
  • so as no longer to form part of those assets, whether or not for a consideration,  
    such transfer or disposal is a supply of goods by the person;
     
     
     

     

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details