ITC availed on inputs used in the manufacture of finished goods that subsequently got destroyed, must be reversed
The Telangana AAAR, in Geekay Wires Ltd., held that Input Tax Credit availed on raw materials and inputs used in the manufacture of finished goods which were later destroyed in a fire must be reversed on the ground that Section 17(5)(h) of the CGST Act bars Input Tax Credit in respect of goods lost or destroyed, and this includes cases where raw materials and inputs were consumed in producing finished goods that are subsequently destroyed.