QUESTION
We purchased gift packs containing Sweets & Namkeens. GST @ 12% was charged by seller being rate of higher taxable item in pack.

Now stock left with us and not saleable as such, so we opened the pack and want to sell namkeen & sweet separately.

Now querry is:
- whether we charge 12% tax on sweets (higher rate being charged on gift pack)
- or we charge 5 % (Applicable rate on sweets) and reverse input taken.

ANSWER
Law Applicable: SECTION 17 OF CGST ACT
(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:-
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and

Interpretation:
In your case you have purchased gift packs as mixed supply @ 12% (higher tax rate) and availed ITC, now you are selling the same individually, therefore tax rate applicable for gift pack as mixed supply will not be applicable and tax will be charged at their respective rates i.e. 5% and 12%. So far as reversal of ITC is concerned, the same is blocked under section 17(5). Section 17(5) blocks ITC if the goods are supplied as gift or free samples, therefore the same will not be applicable in your case as you are not selling sweets or namkeens free of cost as gift, thus the question of reversal of ITC will not arise.

Conclusion:
GST will be charged @ 5% and 12% respectively and there is no need to reverse ITC.