Stock damaged in recent floods

[CHAMANTHI BUDDAVARAPU]

Hello Sir,

I have a doubt regarding damage stock insurance claim & GST ITC. We have purchases and already input claimed at the time of purchase. But in September due floods 15 Lakh stock damaged. We are claiming insurance but insurance company said that we will consider without GST only. GST part will discuss with GST department. Please guide me what is the procedure regarding this in GST department & insurance company

AI Summary

Plywood trader advised to reverse GST input tax credit for destroyed goods under Section 17(5)(h) after flood damage. A trader in the plywood business sought advice on handling GST input tax credit (ITC) following flood damage to stock. The insurance company agreed to cover the cost excluding GST, suggesting the GST issue be resolved with the GST department. Experts advised reversing ITC for destroyed goods under Section 17(5)(h) of the CGST Act, while partially damaged goods sold at a lower price do not require ITC reversal. It was recommended to obtain a Chartered Accountant's certificate for the reversal to facilitate full insurance claims, including GST, to avoid double benefits.