Blog Post
Yes, as per Section 17(5)(h) of CGST Act, 2017, the ITC (input tax credit) taken on inputs used in supply of goods lost / destroyed / stolen during transportation / transit is required to be reversed.
However, present scenario of lockdown declared by Govt due to COVID'19 (Corona Virus Pandemic), the Govt should issue notification for non-reversal of such ITC.
If no notification is being issued by Govt and such ITC involved is huge amount then GST registered person may dispute this issue against department.
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