GST on damaged machinery

[KARAN VERMA]

Sir, there is fire in factory and some machineries are damaged.

5 machines purchased before GST and 3 machines purchased after GST.

What will be tax implication if I received compensation from insurance co.

Whether I need to reverse input credit on machinery purchased in Excise and GST regime.

AI Summary

Input tax credit reversal required where machinery destroyed; insurance proceeds are not subject to GST under law.
Insurance proceeds in respect of destroyed machinery are not subject to GST. No reversal of input tax credit is required for machines acquired pre-GST if no transitional credit was availed. For machines purchased under GST where input tax credit was claimed, input tax credit reversal is required for goods destroyed, lost, or written off. Realisation of scrap value can obviate or adjust the need for reversal; where credit was taken, scrap must be cleared on payment of duty.