https://www.taxtmi.com/forum/issue?id=114770 Whether manufacturers must reverse proportionate input tax credit or pay GST when samples withdrawn for in house quality control testing are consumed or destroyed. One position treats such withdrawals under a restriction on credit for goods disposed as gifts or samples, requiring reversal. Another treats destruction in bona fide testing as part of the business process, arguing ITC need not be denied, though destruction before putting to use may require restriction. A Supreme Court excise decision finding test removed cable pieces not excisable is relied on, and a referral to the GST policy body is suggested. en-us Mon, 18 Mar 2019 06:54:45 +0530 Thu, 23 Jan 2025 15:55:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=114770 Whether manufacturers must reverse proportionate input tax credit or pay GST when samples withdrawn for in house quality control testing are consumed or destroyed. One position treats such withdrawals under a restriction on credit for goods disposed as gifts or samples, requiring reversal. Another treats destruction in bona fide testing as part of the business process, arguing ITC need not be denied, though destruction before putting to use may require restriction. A Supreme Court excise decision finding test removed cable pieces not excisable is relied on, and a referral to the GST policy body is suggested. Discussion-Forum GST Mon, 18 Mar 2019 06:54:45 +0530 https://www.taxtmi.com/forum/issue?id=114770