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GST on damaged machinery, Goods and Services Tax - GST

Issue Id: - 117057
Dated: 3-3-2021
GST on damaged machinery

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Sir, there is fire in factory and some machineries are damaged.

5 machines purchased before GST and 3 machines purchased after GST.

What will be tax implication if I received compensation from insurance co.

Whether I need to reverse input credit on machinery purchased in Excise and GST regime.

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Posts / Replies

Showing Replies 1 to 4 of 4 Records

1 Dated: 3-3-2021
By:- Shilpi Jain

GST will not be applicable on the insurance claim received.

In case no credit is transitioned in to GST relating to the machinery purchased during Excise regime, credit reversal will not be required.

W.r.t. the machinery purchased in GST regime reversal of credit would be required.

However. in case machinery can fetch any scrap value on sale then no credit reversal would be required.

2 Dated: 3-3-2021

Thank you madam, I m satisfied with yout all above views.

But in last, if we realised any scrap value, then why not input reversal required.

3 Dated: 3-3-2021

If you have taken credit, you will clear scrap of machinery on payment duty. If credit has not been, duty already paid at the time of purchase of machinery.

4 Dated: 9-3-2021
By:- Ganeshan Kalyani

ITC to be reversed u/s 17(5) - (h) goods lost, stolen, destroyed, written off or disposed. And, there is no GST on insurance claim.


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