If we have purchased the raw material and manufactured the finished goods and sold to the x pvt ltd. While the goods were in transit it destroyed due to the fire. What would be the GST Implications in the scenario? We have to reverse the input tax credit. If yes then what is the mechanism for the reversal of ITC

Reply—Clause (h) of sub-section (5) of section 17of the CGST Act provides that ITC shall not be available in respect of goods lost, Stolen, destroyed, written off or disposed of by way of Gift or free samples. Provision of reversal is given under Rule 42 of CGST Rules.You have to reverse it in GSTR-3B in table 4 (B).