Debit note to vendor for recovery of itc loss

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This discussion clarifies whether GST should be charged when issuing a debit note to a vendor for recovering Input Tax Credit (ITC) losses. Experts confirm that GST is not applicable in this scenario as it's not considered a supply. The correct accounting entry involves debiting the vendor and crediting 'ITC loss recovered' under duties and taxes.

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(Querist)
20 August 2021 Dear Experts,
If we are raising debit note to vendor for itc loss recovery. should we also charge gst on it?
Also tell accounting entry.
Is this corrrect entry:
vendor dr.
itc loss recovered cr under duties and taxes
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
20 August 2021 Yes, it's the right entry.
GST not applicable on such recovery.
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CA Altamush Zafar

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CA Altamush Zafar (Expert)
22 August 2021 If we are charging money for any loss separately then GST applicable.
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Lekhraj sood

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Lekhraj sood (Expert)
24 August 2021 GST is not applicable as it is not a supply.
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