Before unloading goods returned back, Goods and Services Tax - GST

[S.C. WADHWA]

Dear Expert,

When goods found unacceptable due to quality issue, full consignment or part. My query is how to returned these goods while mentioning on party invoice " Rejected due to quality issue" or issue debit note or supplimentary invoice along with E-way bill. In this case we will get common input tax as goods used both in taxable as well as in exempted items but GST charged in debit note will have to pay in full. Please suggest the right procedure.

WADHWA

Posts / Replies

[Padmanathan Kollengode]

Since the supplier has already issued a tax invoice, you will have to issue Delivery Challan u/r 55 (mentioning in supplier invoice is not sufficient in law) along with e-way bill to return the goods back, and the supplier will have to issue a credit note.

If you have availed the full credit earlier, you will have to reverse the full credit. if you have availed only proportional credit (based on taxable turnover), then only proportional reversal is required.

[Shilpi Jain]

When the goods were rejected with even unloading, how have you taken the credit in the first place? You may not have accounted the goods in the books also.

Pls have a look, if no credit has been taken initially, no reversal required.