GST on Loss of Goods due to flood

No GST is not Applicable on Insurance Claim Received.

@ ankit momaya.... What are the grounds for your answer sir?

Receipt of Claim is not a Supply in accordance with GST Act

It does not cover under the definition of supply u/s 7 Hence no GST is leviable on insurance claim.

@ Ninad Taralekar

ITC needs to be reversed in case of goods lost in terms of provisions of Section 17(5)(h) of the CGST, Act, 2017. File DRC-03 for the same and reverse the ITC availed on such goods at the time of purchase. 

@ Jatin Duggal,


Yes sir i am very much clear about reversal provision. My query is specifically regarding insurance claim received for the loss.

Because lets suppose my total loss is of Rs. 20lakh. Out of which for Rs. 5 lakh i recovered Rs. 1 lakh through scrap so for this Rs. 5 lakh i dont need to reverse ITC. & Insurance company settled my 20 lakh claim for Rs. 6 lakh. My remaining loss is of Rs. 9 lakh on which i reversed the ITC. SO now for that Rs. 6lakh do i need to pay GST?

Yes, either you can pay GST on Rs. 6 Lakh or reverse GST input on 6 Lakh. As per my view.

 

What the supplier has to do? Supplier has supplied the material with payment of GST. Can he avail the ITC.

I apologize for being a little off-topic; I wanted to consult you.

Originally posted by : Rachel
	I apologize for being a little off-topic; I wanted to consult you.

So, I have a small flower shop. Recently, during the rain, the shop was flooded. Water got on the electrical wiring, and the lights went out all over the building. We called the electricians. They fixed everything, but they said that it was due to a violation of the design of the rainwater drainage system. Also, later we called the service for drying and cleaning the carpet https://majesticflooddamagerestoration.com.au/carpet-drying-ballan/. I believe that the architect made a mistake that caused the flood, and we have the right to demand compensation from the owner of the building. I would like to hear your opinion on this issue.