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?
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.
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.
CAclubindia
