Question80: Kindly suggest us the provision of Input Tax Credit in case of Loss by Fire of goods used in case of Trading Business.

Answer The credit of Input is restricted in Section 17(5)(h) as Follows:-

"goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples".

In your case Goods were lost by Fire and not further sold then credit on such goods should be reversed. (Reply dt. 30/3/2018)