The expiry of goods manufactured and the remaining unsold are inseparable parts of the business. Such expired goods must be destroyed as they do not remain usable. However, the provision of reversal of ITC on destroyed/written-off goods comes into play in such situations, creating an unsettled position.
This article analyses Section 17(5)(h) concerning time-expired goods, along with the ambiguities surrounding the reversal of ITC, covering the following key points:
‣ Understanding the Relevant Legal Provisions and their Interpretation
‣ Applicability of the Same in the Given Scenarios
‣ Relevant CBIC Clarification and Contradictory Jurisprudence
‣ Conclusion
