Whether GST to be paid by recepient of Insurance Claim

[anuja bhandari]

The taxpayer is registered under GST, in the business of transportation. His truck was damaged in an accident. Truck was purchased pre GST. Insurance Company paid 7 lacs, truck purchase value was 10 lac. Whether GST to be paid on 7 lacs received by truck owner?

[SHIVKUMAR SHARMA]

No need to Pay GST on Insurance Claim Received By Truck owner for Purchase of Truck before 01.07.2017.

[Ganeshan Kalyani]

Sri Shivkumar Ji, kindly provide the supportive to your reply. This is to enrich the knowledge of the querist.

AI Summary

GST on insurance claims: compensation for loss of a pre-GST business asset is not subject to GST when received. A registered transport business received insurer indemnity for damage to a truck purchased before GST; the advisory response states that the insurance compensation received by the truck owner is not subject to GST because it constitutes an indemnity rather than consideration for a taxable supply.