Question108:
The registered dealer imported goods say Rs.100000/= and paid IGST Rs.18000.00. The goods had become obsolete and not saleable in local market. The same were sold say Rs.10000/= to kabari wala and charged gst Rs.1800.00. My query is input tax credit be available Rs.18000.00 or restricted upto output tax i.e.Rs.1800.00


Answer
Section 17(5) block credit on goods lost, destroyed or disposed off or written off .
In your case goods have become obsolete but are salable in market as scrap for some consideration. When goods are sold as scrap then it is considered as supply but GST is charged at per applicable HSN code of scrap goods.
Thus, you are eligible for ITC of Rs 18000/-.(Reply dt. 06/09/2018)