Car Insurance and GST

This query is : Resolved

meenakshi somasundaram (Querist)
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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.

RAJA P M

RAJA P M (Expert)
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06 September 2023 Yes, Your auditor is correct in this Issue.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 September 2023 Reverse ITC claimed on the car as you got insurance settlement including GST on the car.

PAWAN KUMAR

PAWAN KUMAR (Expert)
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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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