GST -loss in transit
This query is : Resolved
30 September 2021
Hi All
One of my client has sold the goods and goods got lost in transit in the month of dec -2020. Goods did not reach to the customer.Client has paid GST liability as well.
Now he has filed a claim with insurance company for the loss. What treatment needs to be given in the books for the goods for GST as customer of the client wants reversal of credit which is seen in GSTR-2B?
Whether insurance company will pay the claim with GST or without GST?
Thanks in advance.
One of my client has sold the goods and goods got lost in transit in the month of dec -2020. Goods did not reach to the customer.Client has paid GST liability as well.
Now he has filed a claim with insurance company for the loss. What treatment needs to be given in the books for the goods for GST as customer of the client wants reversal of credit which is seen in GSTR-2B?
Whether insurance company will pay the claim with GST or without GST?
Thanks in advance.
30 September 2021
Insurance company will pay the claim with GST.
GST paid on sales, claim made with insurance including GST, hence no need for reversal of ITC.
Keep sale value under current assets and adjust it against insurance settlement.
GST paid on sales, claim made with insurance including GST, hence no need for reversal of ITC.
Keep sale value under current assets and adjust it against insurance settlement.
04 October 2021
Thanks Sir.
Insurance company is not going to pay with GST. Then what is to be done with GST paid ?
Insurance company is not going to pay with GST. Then what is to be done with GST paid ?
04 October 2021
Charge it as transit loss.
05 October 2021
Can I issue credit note for the sale booked for above transaction?
05 October 2021
Issue financial credit note.
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05 October 2021
Can I show the same in GST return?
05 October 2021
No, it's financial credit note need not be shown in GST return.
05 October 2021
If sale did not complete as good didnt reach the destination, then Sir, why can't we show in GST returns?
05 October 2021
Since insurance claim lodged no need to show in GST return.
05 October 2021
ok. But insurance company is going to pay without GST. So GST paid previously on sale is loss to my company. again I need to reverse the credit paid on inputs as well.
05 October 2021
Insurance company will pay including GST.
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