https://www.taxtmi.com/forum/issue?id=120922 Section 17(5)(h) blocks input tax credit on goods that are lost, stolen, destroyed, written off, or given away as gifts or free samples, but a mere inventory write-down does not itself trigger reversal. A reduction in carrying value while goods continue to exist and remain saleable is only an accounting adjustment. ITC reversal arises when goods are actually written off, destroyed, lost, expired, or otherwise cease to be available for taxable supply. If written-off goods are later sold, GST is payable on the outward supply, though the law does not expressly provide for restoration of the reversed credit. en-us Sun, 17 May 2026 14:35:42 +0530 Wed, 20 May 2026 05:35:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=120922 Section 17(5)(h) blocks input tax credit on goods that are lost, stolen, destroyed, written off, or given away as gifts or free samples, but a mere inventory write-down does not itself trigger reversal. A reduction in carrying value while goods continue to exist and remain saleable is only an accounting adjustment. ITC reversal arises when goods are actually written off, destroyed, lost, expired, or otherwise cease to be available for taxable supply. If written-off goods are later sold, GST is payable on the outward supply, though the law does not expressly provide for restoration of the reversed credit. Discussion-Forum GST Sun, 17 May 2026 14:35:42 +0530 https://www.taxtmi.com/forum/issue?id=120922