Section 17(5) of the Central Goods and Service Tax Act 2017,
says that notwithstanding anything contained in section 16(1) or section 18(1),
input tax credit shall not be available for certain inputs or input services.
Clause (h) of the said sub-section talk about the input tax
credit not available on “goods lost, stolen,
destroyed, written off or disposed of by way of gift or free samples”
Now question arise that whether
input tax credit on inputs which has been wasted or lost during manufacturing
process or during the production can be said that “goods lost or destroyed and
input tax credit would not be available because of section 17(5) (h) of the Act.
As per section 16(1) of the Act very registered person shall be entitled to take input tax credit on any
supply of goods or services or both provided such goods or services is used or
intended to be used in the course or
furtherance of business and such amount of credit is credit to the
electronic credit ledger.