https://www.taxtmi.com/caselaws?id=443230 The AAR Telangana ruled that input tax credit must be reversed when raw materials and finished goods are destroyed in a fire accident. The authority held that under sections 17(2), 17(5)(h), and 18(4), input tax credit is available only when taxable supplies are made. Since destroyed goods cannot qualify as taxable supplies, previously availed input tax credit must be repaid. Even though destroyed finished goods were sold as steel scrap with output tax paid, the scrap sale represents destroyed goods and remains ineligible for input tax credit benefits. en-us Sat, 02 Sep 2023 00:00:00 +0530 Sat, 19 Apr 2025 12:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=443230 The AAR Telangana ruled that input tax credit must be reversed when raw materials and finished goods are destroyed in a fire accident. The authority held that under sections 17(2), 17(5)(h), and 18(4), input tax credit is available only when taxable supplies are made. Since destroyed goods cannot qualify as taxable supplies, previously availed input tax credit must be repaid. Even though destroyed finished goods were sold as steel scrap with output tax paid, the scrap sale represents destroyed goods and remains ineligible for input tax credit benefits. Case-Laws GST Sat, 02 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=443230