GST applicable on damaged bus

[KARAN VERMA]

Sir, bus of company is fully destroyed and insurance company gives consideration ₹ 10 lakhs out which profit is ₹ 3 lakhs after reducing WDV of bus as per Income Tax Act.

Whether GST required to paid on profit on damaged bus.

AI Summary

Insurance compensation for destroyed goods not subject to GST because it constitutes compensation, not a taxable supply.
The insurance settlement for a destroyed bus is characterised as compensation and an actionable claim, not consideration for a supply; therefore, absent a supply, GST is not attracted and such insurance proceeds fall within Schedule III exclusions.