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TMI BlogCircular to clarify the procedure in respect of return of time expired drugs or medicinesX X X X Extracts X X X X X X X X Extracts X X X X ..... expired drugs or medicines - Reg . The Central Board of Indirect Taxes Customs (CBIC) has issued Circular No. 72/46/18-GST dated 25.10.2018 to address the issue regarding the subject matter. In accordance with circular issued by CBIC and in order to ensure uniformity in the implementation of the provisions of law across the field formations, in exercise of powers conferred by section 168(1) of the Chhattisgarh Goods and Services Tax Act, 2017 (hereinafter referred to as the CGGST Act ), the issue is clarified hereby in succeeding paragraphs. 2. The common trade practice in the pharmaceutical sector is that the drugs or medicines (hereinafter referred to as goods ) are sold by the manufacturer to the wholesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion taxpayer, he may return the said goods by issuing a bill of supply and pay tax at the rate applicable to a composition taxpayer. In this scenario there will not be any availability of ITC to the recipient of return supply. c) In case the person returning the time expired goods is an unregistered person, he may return the said goods by issuing any commercial document without charging any tax on the same. d) Where the time expired goods which have been returned by the retailer/wholesaler are destroyed by the manufacturer, he/she is required to reverse the ITC availed on the return supply in terms of the provisions of clause (h) of sub-section (5) of section 17 of the CGGST Act. It is pertinent to mention here th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial year and those issued after it. b) It may further be noted that if the credit note is issued within the time limit specified in sub-section (2) of section 34 of the CGGST Act, the tax liability may be adjusted by the supplier, subject to the condition that the person returning the time expired goods has either not availed the ITC or if availed has reversed the ITC so availed against the goods being returned. c) However, if the time limit specified in sub-section (2) of section 34 of the CGGST Act has lapsed, a credit note may still be issued by the supplier for such return of goods but the tax liability cannot be adjusted by him in his hands. It may further be noted that in case time expired goods are returned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Case 2 1st July, 2017 20th October, 2018 Credit note will be issued by the supplier (manufacturer / wholesaler) but there is no requirement to upload the same on the common portal. Subsequently tax liability cannot be adjusted by such supplier. 3. It may be noted that though this circular discusses the scenarios in relation to return of goods on account of expiry of the same, it may be applicable to such other scenarios where the goods are returned on account of reasons other than the one detailed above. 4. Difficulty if any, or any suggestion in respect of the above instructions may please by communicated to this offic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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