Finished goods stock unsold for long time clear as scrap

[Yatin Bhopi]

Sir,

We have old stock of finished goods which is unsold for long time. Due to its nature it is not usable. Now we are clearing this stock far lower then its market price. say similar product we are selling in market at ₹ 150\kg, we are clearing this stock at ₹ 15/kg.

Are we need to reverse the ITC availed?. let me know GST provision in this regard

AI Summary

Input tax credit reversal required when obsolete finished goods are sold as scrap, reverse GST via the periodic return.
Selling finished goods as scrap at a deep discount necessitates reversal of input tax credit; practitioners advise tracing original purchase invoices and reversing the GST amount via GSTR-3B, with valuation support from a Cost Management Accountant to establish the correct reversal amount and to mitigate audit or dispute risk.