HOW TO CLAIM ITC REFUND IN A FIRE ACCIDENT

Save Share

This query is : Resolved

Quick Summary

If your business stock is completely destroyed by fire with no salvageable value, you generally cannot claim an Input Tax Credit (ITC) refund. You will need to reverse any ITC already claimed on the lost goods. However, you are typically not liable to pay GST on any insurance claim received for the fire damage.

K Balasubramanian

K Balasubramanian (Querist)

13 June 2020 IF TRADING CONCERN (COTTON WASTE TRADING) WAS COMPLETE FIRE DAMAGE NO SALVAGE WHETHER CAN CLAIM ITC REFUND

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 June 2020 No ITC refund can be claimed on stock lost in fire.

PARAS CHHAJED

PARAS CHHAJED

(Expert)

14 June 2020 I think that even ITC already claimed in respect of goods lost in fire needs to be reversed. I will revert back after verifying the issue.

Message likes : 1 times

PARAS CHHAJED

PARAS CHHAJED

(Expert)

14 June 2020 You will have to reverse the input taken on the goods lost. However you would not be liable to pay GST on Insurance Claim received.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now