GST compliance towards Goods lost in transit

[TEAM GST]

RTP 'A' raised an E-invoice on RTP 'B' for sale of 10kgs of goods . The entire stock of goods was burnt in transit due to an accident.Further 'A' raised a Credit note on 'B' and a Debit note on the insurance ompany towards Goods lost in transit.

Would this be the right approach for GST compliance.

[KALLESHAMURTHY MURTHY K.N.]

"A'' has taken the right actions by raising a credit note, which nullifies the tax liability on 'B' and issuing the debit note for recovery of loss from the insurance company; no GST applies to the insurance settlement. However, 'A' is required to reverse the Input Tax Credit availed on the destroyed goods.

AI Summary

GST compliance for goods destroyed in transit raises questions on credit notes, insurance debit notes, and documentation treatment. GST compliance is queried where goods covered by an e-invoice were completely destroyed by fire during transit. The supplier issued a credit note to the recipient and a debit note to the insurer. The central issue is whether issuing these documents is the appropriate GST treatment for goods lost in transit.