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TMI BlogITC availmentX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir , if a manufacturer purchases raw material i.e. scrap for manufacture of finished goods namely MS rod clear scrap as such due to its damage or any other reason below the purchase price . Here , the manufacturer takes ITC on the higher price and sells it lower than purchase price . Please clarify whether the above manufacturer are liable to reverse ITC which could not be used in manufacturing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd cleared as such . Thanks - Reply By Ganeshan Kalyani - The Reply = Sir, if the sale price is less than the purchase price then there is loss. Why would someone do business at loss? - Reply By Manoj Pradhan - The Reply = Thanks sir for your reply . But in this case , is the taxpayer liable to reverse ITC ? - Reply By KASTURI SETHI - The Reply = In GST taxable event is 'supply' an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not 'manufacture'. As per Section 15 of CGST Act , the tax payer (assessee) / manufacturer/dealer is to pay GST on transaction value i rrespective of the fact/aspect of profit or loss. No reversal is required. as damaged/defective inputs(goods) are used in the course or furtherance of business as per condition laid down in Section 16(1) of CGST Act . Pl. note that transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n must be genuine and if such practice is repeated, it will pave the way for investigation by the department. - Reply By Amit Agrawal - The Reply = I agree with Shri Kasturi Sethi Ji in toto! It is also due to my presumption that subject transaction is not between related parties. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Amit Agrawal - The Reply = You may also refer to discussions under Issue Id: - 118018 bearing subject-line as GST APPLICABILTIY ON VALUE REDUCTION ( ON PREV SUPPLY) - Reply By Manoj Pradhan - The Reply = Thanks a lot sir for your valuable inputs - Reply By Shilpi Jain - The Reply = If it is a one off transaction and due to some reason there has been a deterioration of goods aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er purchase due to which the sale value is lesser than purchase price, ITC can still be taken. However, in case of ingenuine transactions there could be disputes raised by department if these kind of situations are frequent. - Reply By KASTURI SETHI - The Reply = I agree with Madam Shilpi Jain. - ITC availment - Query Started By: - Manoj Pradhan Dated:- 6-11-2022 Goods and Services Tax - GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Got 8 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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