Writing off of stock post GST

[Aitha RajyaLakshmi]

Sir,

What are the provisions in respect to write off the stock as on the date of implementation of GST and the stock acquired after the implementation of GST?

AI Summary

Reversing Input Tax Credit: Writing Off Stock Under GST and Rule 3(5B) of Cenvat Credit Rules 2004 Explained. A query was raised regarding the provisions for writing off stock with the implementation of GST and for stock acquired post-GST. One response indicated that the corresponding input tax credit must be reversed. Another response referenced Rule 3(5B) of the Cenvat Credit Rules, 2004, stating that writing off inputs and capital goods before use requires reversing the full credit taken. However, if these inputs or goods are subsequently used, the credit can be reclaimed. A circular from December 2009 supports this interpretation.