The fire took place in my client factory. there is loss of some raw material .
We filed the claim with the insurance company. The Insurance company admitted the amount of loss excluding the GST and we retain the goods at salvage value.
As we did not recover the GST amount from the insurance company hence we did not reverse the ITC claimed (as required under section 17(5)(h) of CGST Act.)
Is there any disobeyment of Section 17(5)(h) of CGST Act???
Debate on GST Input Tax Credit Reversal for Fire-Damaged Goods Under Section 17(5)(h) of CGST Act A discussion on a forum centered around the Goods and Services Tax (GST) implications for a client whose factory experienced a fire, resulting in the loss of raw materials. The client filed an insurance claim, which was settled without the GST component. The primary issue discussed was whether the client needs to reverse the Input Tax Credit (ITC) under Section 17(5)(h) of the CGST Act, given that GST was not recovered from the insurer. Various contributors shared differing opinions on whether ITC should be reversed, with some suggesting that the insurance claim should cover GST losses, while others emphasized compliance with Section 17(5)(h). The discussion also touched on the interpretation of legal terms and the potential need for legislative changes to address such scenarios. (AI Summary)
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