Insurance claim on goods damage in transit (Sales)

[Yatin Bhopi]

We have supplied goods on door delivery basis, but goods were damaged in transit due to accident. Now we are submitting our insurance claim GST paid by us. Please share your views on below queries.

1. Are we need to claim GST also? (Rs. Taxable value ₹ 100+ GST ₹ 18 = ₹ 118)

2. let know how to treat GST in returns and books

AI Summary

Insurance recovery of input tax credit: insurers may cover ITC-reversed losses but double recovery of GST benefits is barred.
Insurers generally indemnify the value of damaged goods but not the GST on a supply that was not completed; suppliers must reverse input tax credit for lost or damaged goods and record the reversal in GST receivable/tax accounts. Claiming reimbursement from insurers for the ITC component may be possible where ITC has been reversed, but taxpayers must avoid double recovery and should notify the tax authorities when making such insurance claims involving tax-bearing inputs.