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Reversal of ITC on loss in transit

ITC / Input 1799 views 5 replies

Chander Pal Singh

PROPRIETOR

73 Points Joined December 2010

We had sent goods on approval and the same has been lost in transit. what would the treatment under GST regime???

Should we reverse the input credit taken earlier?

if there is no itc then what would be the treatment.

and what would be the treatment if goods that lost in transit, we party ITC taken.

pls help.

Replies (5)

prasad Nilugal

GST Practitioner & Accounts

15022 Points Joined March 2014

As per section 17(5) (h) of the CGST act 2017 Goods lost No input tax credit is available .

Chander Pal Singh

PROPRIETOR

73 Points Joined December 2010

thanks..... what would be the journal entries for the same??

lost in transit. (amt of loss) Dr.
to purchases. Cr.

GST Disallowed/reversal (amt of tax) Dr.
to GST payable. Cr.

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Yes...
The Goods values will be transferred to PandL account as Loss...

The Input Tax amount will be reversible...

Rajesh TM

Accounts Manager

132 Points Joined July 2015

sir,

could u please elaborate the journal entries

loss in transit amount means taxable value?

Gst disallowed/reversal (amount of tax) under the which head?

please suggest. thanks in advance

regards

Rajesh

Amandeep Singh

Private Job

436 Points Joined September 2017

Dear Sir

Can you guide to me due to non filed the return by supplier i have reversed the ITC via 3B. But its pending in books please guide to me entry how to adjust the same in books