GST implication on goods stored in warehouse under excise regime

[Kaustubh Karandikar]

XYZ(Manufacturer) had transferred the goods from factory to warehouse under a specific permission without payment of excise duty in Excise Regime and they are still lying there. 1) Now if they divert these goods to other customers, can they pay GST on sales price even if sale price is less than purchase price? 2) If they scrap this material, do they need to reverse the CENVAT credit availed in the excise regime on the inputs used for manufacturing these pumps or can pay GST on sales value of scrap. 3) If they write off this inventory in books of accounts, do they need to reverse CENVAT credit availed in the excise regime on the inputs used for manufacturing these goods?

AI Summary

Manufacturer Seeks Guidance on GST for Selling Below Purchase Price, Scrapping Goods, and Inventory Write-Off A manufacturer transferred goods to a warehouse without paying excise duty under the excise regime. They seek guidance on GST implications for three scenarios: selling goods at a price lower than the purchase price, scrapping the goods, and writing off inventory. One response affirms the possibility of selling at a lower price but advises obtaining departmental permission for scrapping and confirms the need to reverse CENVAT credit when writing off. Another response agrees with the need for departmental clarification if selling below purchase price and concurs with the other points regarding scrapping and inventory write-off.