GST Not Payable on Goods Lost in Transit, But ITC Reversal Required: AAR Gujarat

In re Inox Air Products P Ltd. (GST AAR Gujarat) The Gujarat Authority for Advance Ruling (AAR) addressed the application of M/s. Inox Air Products P Ltd., a manufacturer and supplier of industrial gases. Inox Air sought clarification on the GST implications of transit losses of liquid gases, which evaporate during transportation due to their volatile nature. The company transports these gases in specialized cryogenic tanks, often delivering to multiple customers in a single trip (milk run). Due to evaporation, the exact quantity delivered is determined only upon decanting at the customer̵...