TaxTMI 
TaxTMI 
ITC reversal on goods lost in fire
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....TC reversal on goods lost in fire<br> Query (Issue) Started By: - Kaustubh Karandikar Dated:- 13-4-2023 Last Reply Date:- 30-4-2023 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Goods lost in fire also includes 'Work - In - Process (WIP') material. How to arrive at the amount of input tax credit to be reversed in case of WIP lost in fire? Reply By Padmanathan Kollengode: The Reply: If....
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.... ITC is going to be reversed on WIP lost in fire, then it has to be reversed based on inputs consumed in the WIP. However, there is also a view that no ITC is required to be reversed o WIP/ Finished products. Reply By Shilpi Jain: The Reply: If ITC is to be reversed then consider to take data from the BOQ. Identify the quantum of material that was in the WIP and on a reasonable basis estimate ....
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....the ITC involved in those inputs and reverse. Reply By Amit Agrawal: The Reply: Goods - on which ITC availed - were not lost by fire, but the 'intermediary goods during manufacturing' / 'finished goods after manufacturing' were lost. So, restriction u/s 17 (5) (h) does not apply. This is more so where there is absence of any machinery provision prescribed to calculate ITC involve....
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....d in these events. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Ganeshan Kalyani: The Reply: 'Goods lost' is covered under sec.17(5) but how the goods lost is not mentioned. So, goods may be lost by fire and therefore falls under the said section. ITC reversal is required. Reply By Ganeshan Kalyani: The Reply: In o....
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....rder to arrive at a value of WIP the stock available under WIP may be considered and a GST percentage may be applied to that stock and arrive at GST. The accounting system should be having the WIP quantity which can be referred.<br> Discussion Forum - Knowledge Sharing ....