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.
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.
CAclubindia
