Question 3 - ‘A’ supplied goods to ‘B’ in April 2017, these goods were returned by ‘B’ to ‘A’ on June 2017. The tax rate charged by ‘A’ on such goods was 18%. In May 2017, the rate was amended to 18.5%. What is the tax payable on return of such inward supply by ‘B’ to ‘A’?
FAQ on GST dated 21.9.2016 based on Draft Model GST Chapter 13 Assessment and Audit
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Tax rate on returned goods remains the original supplier's charged rate even after later rate amendment. When goods supplied earlier at a specified tax rate are returned after a later rate amendment, the tax on the inward supply is the tax rate originally charged by the supplier at the time of the original supply, in line with GST FAQ guidance.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax rate on returned goods remains the original supplier's charged rate even after later rate amendment.
When goods supplied earlier at a specified tax rate are returned after a later rate amendment, the tax on the inward supply is the tax rate originally charged by the supplier at the time of the original supply, in line with GST FAQ guidance.
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