TaxTMI 
TaxTMI 
TaxTMI 
Input credit of GST in Case of Accident claim
X X X X Extracts X X X X
X X X X Extracts X X X X
....nput credit of GST in Case of Accident claim<br> Query (Issue) Started By: - Yogesh Ashar Dated:- 3-1-2019 Last Reply Date:- 6-1-2019 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>Dear Sir In case of transporter who is charging GST on forward charge basis @12%, the query is in reference to insurance claim received on accident of truck. The Insurance company settled @75% of the amount. 2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....5% is borne by the transporter. The amount billed by the repairer is in the name of the Company, where he has billed for the total amount. Queries 1. Whether any GST has to be charged to the Insurance Company and accordingly a tax invoice needs to be raised for the 75% amount settled by the Insurance company 2. Whether full ITC can be claimed by the Tranporter 3. Whether it will have to revers....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 75% of the ITC Thanks Reply By YAGAY andSUN: The Reply: In our view proportionate ITC needs to be reversed. Reply By Abhishek Sethi: The Reply: Prima facie, Insurance claim amount should be treated as compensation, not consideration - thus no GST. Secondly, there doesn't seem to be any requirement for reversal of credit by transport company, in as much consideration is being paid by In....
X X X X Extracts X X X X
X X X X Extracts X X X X
....surance Company on behalf of Transporter (who had paid insurance premium to ensure coverage of such situations) and service is being received by transporter in full Reply By KASTURI SETHI: The Reply: Dear Abhishek Sethi, Logically you may be correct but we are to follow legal definition of, 'Consideration' as per Section 2(31) of CGST Act, 2017. (31) "consideration" in relation t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the supply of goods or services or both includes - (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government : Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the supplier applies such deposit as consideration for the said supply;<br> Discussion Forum - Knowledge Sharing ....