21 September 2023
I am having business of chips and kurkure, i purchased goods worth 100000 plus 12000 gst. Later on 20% chips packets became damaged (packets depuffed and rat cutting ) etc . My supplier has a policy to send the goods to wasteline co. And nominal value of goods received from that company and leftover reimbursement is done by supplier . 20000 is my damages and 1000 i have received from wasteline and 19000 from supplier . I am paying gst on 1000 also its my sale . How will i account for 19000 in my books and also guide me gst is applicable on this or not ?
21 September 2023
Sir , but we according to supplier its the value of goods which is declining. So goods are sold on nrv i.e at 1000. And supplier is reimbursing my loss. Then why i need to reverse itc.
CAclubindia
