Role of supplier in case of loss of material en route

What will be the role of the supplier where material has been destroyed enroute ?

Supplier had despatched the material with payment of GST.

Replies (4)
Quick Summary
This discussion clarifies the supplier's role when materials are lost during transit, particularly concerning GST. If the supplier is responsible for delivery as per agreed terms, they are liable for the loss and must make good the damage, often through insurance claims. The buyer cannot claim input tax credit (ITC) on lost goods, but can claim ITC on replacement goods supplied by the vendor.

1) Need to check the agreed delivery terms. If delivery is the responsibility of the supplier (as per order and its acceptance by the supplier), then the supplier will be held liable for the loss and he is obligated to make good the loss. In this case, usually the supplier would obtain insurance and he can claim compensation (including GST) from the insurance company. 2) As per section 17(5) of CGST Act, the customer cannot claim input tax credit if the goods are lost in transit.
Agree with poornima
Madam, Can you pl tell me the role of buyer? Does the buyer have to submit any document to GST authority ? As in his GST ledger the Invoice of the high jack material will remain open. Pl help me.

If the delivery is the responsibility of the supplier and in case of goods are lost in transit, then the supplier is required to make good the loss to the buyer (that is supply again). The buyer can avail ITC on the basis of this supply.

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