Question 9 - Sales return under CST (i.e. Central Sales Tax Act) is allowable as deduction from the turnover within six months? If, say, goods are returned in GST regime by a buyer within six months from appointed day, will it become taxable in GST?
Sales return treated as supply: tax payable in GST if goods taxable and buyer registered; refund possible if buyer unregistered. Sales return of goods sold within six months before the appointed day and returned after the appointed day is treated as a supply in GST and is taxable if the goods are taxable under GST and the buyer is registered. If the buyer is unregistered and the goods are returned within six months (with possible extension) and are identifiable, the seller may claim refund of the Central Sales Tax paid under the existing law.
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.
Sales return treated as supply: tax payable in GST if goods taxable and buyer registered; refund possible if buyer unregistered.
Sales return of goods sold within six months before the appointed day and returned after the appointed day is treated as a supply in GST and is taxable if the goods are taxable under GST and the buyer is registered. If the buyer is unregistered and the goods are returned within six months (with possible extension) and are identifiable, the seller may claim refund of the Central Sales Tax paid under the existing law.
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