TaxTMI 
TaxTMI 
I had purchased the goods from one party & sold to another party for Rs 295000 but fire occured at time of sales and goods destroyed and insurance claim received of Rs 293000 what journal entry passed in books of accounts & how to give impact in GST
Regarding loss on sale due to fire
17 Apr 2025 
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GST reversal obligations when a recorded sale's goods are destroyed by fire require credit note and return adjustments.
Record inventory write off by debiting a loss account and crediting Inventory for book value. Debit Bank and credit the loss account on receipt of insurance proceeds, with the net difference in Profit & Loss. If no tax invoice was issued, no GST liability arises. If sale was recorded, reverse the supply and output tax by issuing a credit note and adjusting GSTR 1 and GSTR 3B. Reverse any Input Tax Credit claimed on the destroyed goods and reflect the ITC reversal in accounts. (AI Summary)
Record inventory write off by debiting a loss account and crediting Inventory for book value. Debit Bank and credit the loss account on receipt of insurance proceeds, with the net difference in Profit & Loss. If no tax invoice was issued, no GST liability arises. If sale was recorded, reverse the supply and output tax by issuing a credit note and adjusting GSTR 1 and GSTR 3B. Reverse any Input Tax Credit claimed on the destroyed goods and reflect the ITC reversal in accounts. (AI Summary)