GST applicable on damaged bus, Goods and Services Tax - GST

[KARAN VERMA]

Sir, bus of company is fully destroyed and insurance company gives consideration ₹ 10 lakhs out which profit is ₹ 3 lakhs after reducing WDV of bus as per Income Tax Act.

Whether GST required to paid on profit on damaged bus.

Posts / Replies

[Shilpi Jain]

If the money is received for settlement of the insurance claim, no GST would be liable. Only if there is a supply there would be a liability of GST.

[DR.MARIAPPAN GOVINDARAJAN]

Agreed. There is no GST liability.

[KASTURI SETHI]

I support the views of both experts. This very amount is compensation and compensation is not income/consideration. It is actionable claim and covered under Schedule-III.