There is gst registered dealer dealing in electric and electronic items. They have purchased an item which is used to make memory cards but that raw material item became dead stock and is of value around 10 lakhs which is not at all saleable in the market and lying in closing stock since last 2 years. What is the remedy in legal way in gst law to dispose without payment of gst in legal terms. That item is 18 percent taxable whose gst itc has been claimed already but stock is not yet sold and has no realisable value as on date. Kindly suggest legal way only as per GST law.

Reply—Clause (h) of sub-section (5) of section 17 of the said 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. In the above case, if taxpayer wants to write off dead stock, ITC is need to be revered as per above provision.

Or if taxpayer is going to sell this stock, GST will be applicable on transaction value as per section 15 of CGST Act.