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TMI BlogGoods lost in transitX X X X Extracts X X X X X X X X Extracts X X X X ..... Goods lost in transit as informed by the Courier service who had collected the goods therefore GST not paid on it. Whether it is correct? If not, what was the correct action to be taken? Any GST liability to the supplier? - Reply By Amit Agrawal - The Reply = I have not understood factual position ( including reason behind movement of goods through courier, before same got lost ) as well as po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... int / context of dispute . Request you to elaborate. - Reply By Kaustubh Karandikar - The Reply = Shri Amit ji, Goods are handed over to the courier agency for delivery to the customer along with Tax Invoice. These goods lost in transit as informed by the customer. Since goods got lost, though tax invoice was prepared, it was neither shown in GSTR - 1 no in GSTR - 3B and therefore no GST p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment made. Will there be any GST liability in this situation? In my view, proportionate ITC needs to be reversed under Section 17(5)(h) . However, GST authorities might demand payment of GST with interest since invoice was issued. You expert views please. - Reply By KASTURI SETHI - The Reply = Dear Sir, What are the terms conditions of the courier company in this conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xt ? There must be some policy of the company. Whether the goods were lost due to natural causes (floods, rains etc.) or theft ? Whether the courier company lodged FIR with the jurisdictional Police Station ? - Reply By GUNASEKARAN K - The Reply = Yes, you have to pay the liability for such transaction. Goods sent along with Tax Invoice and its also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded in GSTR-1 hence it is also need to report in GSTR-3B and payment of Tax must to be made. In your case, Goods lost during the transit hence your customer not received any goods so he cannot avail ITC and he will not make payment for the transaction. So, you must issue a credit note for non-supply of goods to reduce your output liability and reverse the Input Tax Credit taken on inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts used to supply of lost goods. Please refer Clause (h) of Section 17(5) is reproduced below- ITC is not available if the purchased goods are lost or stolen or damaged or written off or given away as free samples or gifts. Sometimes, ITC would already be claimed upon purchase but might later have to be reversed in GSTR-3B when any of the above scenarios happen. - Reply By Shil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pi Jain - The Reply = Finished goods lost in transit - reversal of credit may be done. Though a view can also be taken that ITC has been taken only on inputs and input services gone into the FG and not on the FG itself. Though a disputed view. If its a traded commodity - reverse credit considering goods lost. - Reply By Padmanathan Kollengode - The Reply = I agree with views of Sri Gunasekaran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir and Shilpi Ma'am. - Goods lost in transit - Query Started By: - Kaustubh Karandikar Dated:- 3-8-2023 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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