We had bought the goods 2 years back due to non-sales on time got spoiled which we sold in scrap should we refund the input tax of the value which is difference of scrap sale and purchase price
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In my view, reversal is not required on the following grounds :-
(i) Not hit by Section 17(5)(h) of CGST Act. The word. 'spoiled' does not find place in this sub-clause.
"(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and
(ii) Sale of scrap i.e. spoiled goods are covered in the phrase, "used in the course or furtherance of his business" as per Section 16 (1) of CGST Act
Agree with kasturi sir. Once goods sold with payment of tax, be it whatever value , ITC would be eligible.
No need to reverse the input tax credit as clarified by experts.
yes, in my view the expert opinions appear to be correct.
Thanks for your concurrence with the views. I could not digest the word, 'appears'. In my views, the word, 'appears' contains the element of uncertainty. In other words, the absence of confirmation. Do you agree ? Your views please, sir.