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Claim of GST Input on damaged goods

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jalees

B.Com

25 Points Posted on 21 June 2023

When providing Goods Transport Agency (GTA) services to my customer, there may be instances where goods get damaged during transit. In such cases, my customer intends to treat the damaged goods as if they were purchased by us, reducing the amount from the invoice. They plan to issue an invoice reflecting the purchase of the damaged goods and file it for Goods and Services Tax (GST) purposes. Is this treatment correct, and can I claim the GST?

Replies (4)

Quick Summary

This discussion clarifies that a Goods Transport Agency (GTA) cannot correctly claim GST input tax credit by treating damaged goods as a purchase and issuing a purchase invoice. Instead, the focus should be on handling the damage as per the transportation agreement or insurance. While generally not permissible, claiming ITC might be possible if the customer returns the goods via a tax invoice and the GTA operates under forward charge with ITC.

Mithun Pandey

36 Points Posted on 21 June 2023

Please elaborate the matter more . it is less understandable.

B Durga Prasad

Student

125 Points Posted on 21 June 2023

No, the treatment of treating the damaged goods as a purchase and issuing an invoice reflecting the purchase for GST purposes is not correct. It is not appropriate to claim GST on the damaged goods in this manner. Instead, handle the damaged goods separately and address any claims or compensation for the loss or damage as per the terms of the transportation agreement or insurance coverage, if applicable.

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