https://www.taxtmi.com/caselaws?id=768314 AAR Gujarat ruled that no GST is payable on goods lost in transit as there is no supply when loss occurs before delivery to customer, prior to place and time of supply. However, the applicant must reverse Input Tax Credit (ITC) on inputs used in manufacturing the lost goods under section 17(5)(h) of CGST Act, 2017. The court held that since lost goods cannot participate in taxable outward supply, the ITC fails vesting conditions under section 16, making it blocked credit that must be reversed. en-us Tue, 25 Mar 2025 00:00:00 +0530 Sat, 07 Jun 2025 11:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768314 AAR Gujarat ruled that no GST is payable on goods lost in transit as there is no supply when loss occurs before delivery to customer, prior to place and time of supply. However, the applicant must reverse Input Tax Credit (ITC) on inputs used in manufacturing the lost goods under section 17(5)(h) of CGST Act, 2017. The court held that since lost goods cannot participate in taxable outward supply, the ITC fails vesting conditions under section 16, making it blocked credit that must be reversed. Case-Laws GST Tue, 25 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768314