Tax liability on unsold goods

Santosh Salvi (3 Points)

19 January 2024  

hi,

Is there tax liability on unsold goods? e.g. a distributor has expired or damaged goods which the supplier/mfr does not accept. these goods are unsaleable, however since the ITC is availed is there a tax liability on these goods? Will reversing ITC claimed absolve us of the tax liability? thanks in advance