Denial of GST Credit on Goods Confiscated or detained : ICAI Suggestions

By | October 9, 2017
(Last Updated On: October 9, 2017)

Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

Law Related Issues

38. Denial of Credit on Goods Confiscated or detained

Clause i of Section 17(5) of CGST Act provides that input tax credit shall not be available
in respect of the any tax paid in terms of section 74, section 129 or Section 130 dealing with confiscation and detainment of goods.

When the Confiscated Goods are released and sold it will be subject to tax and hence to
deny the credit thereon is not appropriate subject to tax, interest & penalty.

It is suggested that there be no denial of ITC on goods confiscated or detained. Interest &
penalty may be charged but denial of credit lead to cascading and multipoint tax


Read Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

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About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email :

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