Car Insurance and GST
This query is : Resolved
06 September 2023
I bought a car in my company's name in July 11/2022. Availed GST.
Unfortunately, the car was totally damaged when it met with an accident in December 2022.
I claimed insurance and Reliance Insurance settled me fully in March 2022.
My auditor says I made a profit of RS 4,51, 432,55 ad asks me to pay GST.
I do not consider this as profit. Like to know whether I have to record.
Need your direction asap.
Unfortunately, the car was totally damaged when it met with an accident in December 2022.
I claimed insurance and Reliance Insurance settled me fully in March 2022.
My auditor says I made a profit of RS 4,51, 432,55 ad asks me to pay GST.
I do not consider this as profit. Like to know whether I have to record.
Need your direction asap.
06 September 2023
Reverse ITC claimed on the car as you got insurance settlement including GST on the car.
06 September 2023
As per my view, the insurance amount received in lieu of damaged of the car during accident is a actionable claim and is as per schedule 3 GST act, No GST is payable. Since at the time of purchase you availed ITC, this need to reverse as per my view.
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