Goods lost in transit -Accounting and GST impact
This query is : Resolved
Sonnal Khandaray
(Querist)
27 April 2022
Hi All
One of my clients do trading in imported goods. He had sold goods in the month of Dec 2020 which got lost in transit. Insurance company paid the amount excluding GST in FY 21-22. He did not issue credit note till date in GST returns. His customer didnt claim credit of goods which are not received by him.
What will be the treatment of under GST of the above transaction?
What will be the accounting treatment of the above transaction in FY 21-22 as books for FY 20-21 are already closed?
Thanks in advance.
One of my clients do trading in imported goods. He had sold goods in the month of Dec 2020 which got lost in transit. Insurance company paid the amount excluding GST in FY 21-22. He did not issue credit note till date in GST returns. His customer didnt claim credit of goods which are not received by him.
What will be the treatment of under GST of the above transaction?
What will be the accounting treatment of the above transaction in FY 21-22 as books for FY 20-21 are already closed?
Thanks in advance.
CA Akshay Hiregange
(Expert)
09 May 2022
It is unclear whether customer paid or not for the GST portion. Assuming he paid then GST collected and paid to govt. will follow normal process.
If not collected and no credit note raised, then debtors to be shifted to expense.
If not collected and no credit note raised, then debtors to be shifted to expense.
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