Question

________with respect to goods lost, stolen, destroyed or

written off as well as on goods given as gifts or free

samples_______ ?


1) Input tax credit

is not allowed,

will also be not

allowed


2) Input Tax credit

will be allowed,

will not be

allowed


3) 100% Allowed in

both cases


4) None of the above​

Answer 1

Answer:

The correct answer is d

Answer 2

1) Input tax credit is not allowed with respect to goods lost, stolen, destroyed or written off as well as on goods given as gifts or free samples will also be not allowed.

Explanation for the answer:

• ‘Input Tax Credit’ or ‘ITC’ refers to the Goods and Services Tax which is paid by a taxable person on any purchase of goods and/or services which are used or will be used for business.
• Section 16 of the CGST Act lays down some of the conditions which needs to be fulfilled by GST registered buyers to claim ITC.
• ITC is not allowed on Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples.
• Hence, the correct answer among all the options is option 1) Input tax credit is not allowed, and will also be not allowed.

(#SPJ3)