Discuss the compliances relating to ITC if goods are lost by fire, or distributed as samples, or transferred for personal use.
Clause “h” of section 17(5) of CGST Act 2017, provides an extensive list of ineligible ITCs for taxpayers. Accordingly, ITC on goods lost, stolen, destroyed, written off, or given off as gifts or free samples fall under said section. Further, if ITC on such goods had been availed earlier, then the taxpayer is required to reverse the same along with due interest.
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