Input tax credit exclusion for destroyed or lost goods requires reporting and may trigger recovery unless tax and interest are paid promptly. Input tax credit is not available for goods lost, stolen, destroyed, written off, gifted, or supplied as free samples; recovery may be initiated by issuing a show cause notice and a statement of wrongly availed input tax. A taxpayer who pays tax and interest within the prescribed period avoids penalty, while voluntary payment with written intimation leads the officer to determine tax, interest and a reduced penalty. Officers must solicit structured stock statements, verify losses through field visits, and reconcile claims with GST backend data.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit exclusion for destroyed or lost goods requires reporting and may trigger recovery unless tax and interest are paid promptly.
Input tax credit is not available for goods lost, stolen, destroyed, written off, gifted, or supplied as free samples; recovery may be initiated by issuing a show cause notice and a statement of wrongly availed input tax. A taxpayer who pays tax and interest within the prescribed period avoids penalty, while voluntary payment with written intimation leads the officer to determine tax, interest and a reduced penalty. Officers must solicit structured stock statements, verify losses through field visits, and reconcile claims with GST backend data.
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