MADDIRALA SUNIL KUMAR (ACCOUNTANT) 18 October 2019
I AM RUNNING CHILLIES BUSINESS AND PURCHASED CHILLIES FROM UNREGISTERED DEALERS(from farmers) DUE TO PURCHASE OF AGRICULTURAL PRODUCT FROM FARMERS GST IS EXEMPTED ON PURCHASE. ONE DAY WHEN I KEPT MY STOCK IN GODOWN THERE WAS A HEAVY FLOOD AND STOCK WAS DAMAGED DUE TO THIS I CLAIMED INSURANCE AND I GOT INSURANCE AMOUNT.
HERE MY QUESTION IS HOW I SHOW IN BOOKS OF ACCOUNTS & GST ABOUT INSURANCE CLAIMED AMOUNT AND CAN ANY ONE EXPLAIN HOW TO POST THE ENTRY IN BOOKS ?
Santosh Kulkarni (Consultant) 18 October 2019
Amount of compensation received towards loss suffered needs to be adjusted against in the inventory ( Write off inventory to the extent of claim received, if the loss is more than the compensation received) .
Question of GST will not arise here. Hence, no disclosure in the returns concerned for the period needs to be made.