Q. 160 A Gst registered regular scheme dealer itc credit details mentioned below for the month of July -22 Itc as per 2a in gst portal show cgst:22438/- sgst:22438/- Itc show as per books orginal invoice based cgst:32674/-sgst:32674/- Itc show as per gstr2b in gst portal cgst:37,486/- sgst :37,486/- .if gstr2b itc claim June -22 previous month invoices show Question: Dealer itc credit claim show in gstr3b correct procedure for the month of July -22 ?

Ans. The taxpayer is required to match ITC as per the books of accounts and GSTR-2B with one-to-one invoice mapping. Further, any ITC difference appearing is to be reconciled. 

Q. 159 Taxpayer has car capitalised in books for the purpose of profession. The said car met with accident and damage is so extensive that it has to be scrapped. The insurer has agreed to give claim of Rs 6L and also salvage value of Rs 3L (to be paid by salvage buyer directly to insured). The wdv as on 31.03.2022 of car in books is Rs 1L. Whether GST is applicable ?

Ans. Insurance compensation received Para 6 of Schedule III specifically excludes actionable claims other than lottery, betting, and gambling, from the ambit of definition of supply. It is neither supply of goods nor supply of services. In the above situation, the taxpayer would receive an insurance claim of Rs. 6 lacs from the insurance company on account of car damage. Also, right to cover insurance money falls under the definition of actionable claims. Since an insurance claim to be received by the taxpayer due to damage to the car is the actionable claim, therefore it is treated neither as the supply of goods nor supply of services, therefore it is not taxable under GST. GST on salvage value In terms of section 7, supply includes sale, transfer, barter, exchange or disposal of goods for a consideration in the course or furtherance of business. Salvage value received to be treated as supply. Therefore, it is taxable under GST. Ø Notification No. 8/2018- Central Tax Rate issued dated 25th January 2018 applicable for used and old cars, value of supply would be determined on the basis of margin prescribed in the above notification. However, this is a very subjective matter of litigation, you are required to take a detailed opinion.

Q. 158 Whether building contract who collect GST@12% can take the input tax credit of his input goods and services, like, Cement, Steeel, Bricks, labour bill, consultancy charges etc ?

Ans. In terms of section 17(5) of the CGST Act, 2017, input tax credit on works contracts belonging to buildings is not available. However, ITC can be claimed by the taxpayer who is in the same line of business and is using the above services for further supply of work contract services.