Writing off of stock post GST, Goods and Services Tax - GST

[Aitha RajyaLakshmi]

Sir,

What are the provisions in respect to write off the stock as on the date of implementation of GST and the stock acquired after the implementation of GST?

Posts / Replies

[Ganeshan Kalyani]

The corresponding input tax credit is required to be reversed.

[MUKUND THAKKAR]

Rule 3(5B) in the Cenvat Credit Rules, 2004, to provide that writing off the value of inputs and capital goods before putting them to use would entail reversal of the full Credit taken on them and that subsequent use of the inputs or capital goods would enable taking the Credit again. The latest Circular (number 907/27/2009-CX dated December 7, 2009) reiterates this position.