Damage claim received from supplier

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uma sharma (Querist)
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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 ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 September 2023 Issue credit note for 20,000 without GST reverse ITC related to 20,000 if any claimed.
Account sale of 1000 with GST.

uma sharma

uma sharma (Querist)
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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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 September 2023 ITC reversal required for goods damaged or lost

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