GST on Write off of inventory rm wip and fg

[Madhavan iyengar]

A company has some RM inventory/ WIP/ FG in stock of pre gst period which is not usable

Now it is proposed to write off the the RM/ Inventory/WIP/FG in books and also from inventory

Will ITC required to be reversed on the RM/Inventory/WIP/ FG as per sce 17(5)(h)

What will be basis for reversal and how to arrive at reversal amount

AI Summary

Company Must Reverse Input Tax Credit for Pre-GST Inventory Write-Off Under Section 17(5)(h) Proportionately A company is considering writing off raw materials, work-in-progress, and finished goods from the pre-GST period that are no longer usable. The query revolves around whether the input tax credit (ITC) must be reversed for these items under section 17(5)(h) of the GST regulations. Two responses confirm that ITC should indeed be reversed proportionately based on the value of the written-off inventory. The reversal amount should be calculated using the value recorded in the company's books for the write-off.