How to pay/Reverse GST on accidental loss of material being supplied to SEZ

Friends,

I need guidance on the following problem.

A tanker full of material is being supplied to SEZ (without payment of GST), meets with the accident and in process looses say 10MT from original 16MT material dispatched.

My queries are
1) We will be short supplying the material should we raise credit note to buyer for the lost quantity?

2) What happens to GST on the Lost material. Should one pay GST on lost quantity at the highest sale price or should one reverse the ITC for the lost material (This will be very difficult as to find out what all goes in to manufacturing of that quantity). Is there any formula?

Please gude

Replies (1)

You will be generating credit note for the material loss. The buyer will either not take ITC in loss quantity in the first instance itself since he has not received the goods. But a better way will be to claim ITC and reverse the loss quantity part to match with GSTR-2A/B

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