ICICI

GST on Loss of Goods due to flood


Ninad Taralekar   02 December 2019

Ninad Taralekar

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Do i need to pay GST on Insurance claim received due to loss of goods in flood?

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CA Ankit R Momaya (Partner at Bhat Momaya & Associates)     02 December 2019

CA Ankit R Momaya
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No GST is not Applicable on Insurance Claim Received.

Ninad Taralekar   02 December 2019

Ninad Taralekar

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@ ankit momaya.... What are the grounds for your answer sir?

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CA Ankit R Momaya (Partner at Bhat Momaya & Associates)     02 December 2019

CA Ankit R Momaya
Partner at Bhat Momaya & Associates 
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Receipt of Claim is not a Supply in accordance with GST Act

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Raksha (Student CA Final )     02 December 2019

Raksha
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It does not cover under the definition of supply u/s 7 Hence no GST is leviable on insurance claim.

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JATIN DUGGAL (CHARTERED ACCOUNTANT IN PRACTICE)     03 December 2019

JATIN DUGGAL
CHARTERED ACCOUNTANT IN PRACTICE 
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@ Ninad Taralekar

ITC needs to be reversed in case of goods lost in terms of provisions of Section 17(5)(h) of the CGST, Act, 2017. File DRC-03 for the same and reverse the ITC availed on such goods at the time of purchase. 

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Ninad Taralekar   03 December 2019

Ninad Taralekar

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@ Jatin Duggal,


Yes sir i am very much clear about reversal provision. My query is specifically regarding insurance claim received for the loss.

Because lets suppose my total loss is of Rs. 20lakh. Out of which for Rs. 5 lakh i recovered Rs. 1 lakh through scrap so for this Rs. 5 lakh i dont need to reverse ITC. & Insurance company settled my 20 lakh claim for Rs. 6 lakh. My remaining loss is of Rs. 9 lakh on which i reversed the ITC. SO now for that Rs. 6lakh do i need to pay GST?

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CA Chandra Prakash (9873059766 Increasing knowledge through sharing)     04 December 2019

CA Chandra Prakash
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Yes, either you can pay GST on Rs. 6 Lakh or reverse GST input on 6 Lakh. As per my view.

 

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Dip Narayan (Assistant Manager)     05 December 2019

Dip Narayan
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What the supplier has to do? Supplier has supplied the material with payment of GST. Can he avail the ITC.


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