Return of time expired drugs: options to treat as fresh supply or issue credit note, affecting input tax credit and reversal. Registered suppliers (other than composition taxpayers) may treat return of time expired goods as a fresh supply, issue an invoice at the original supply value, and enable the recipient to claim Input Tax Credit subject to Section 16. Composition taxpayers must issue a bill of supply and pay composition tax with no ITC to recipient. Alternatively, suppliers may issue a credit note under section 34; if issued within the section 34(2) timeframe and uploaded, tax liability may be adjusted provided the recipient has not availed or has reversed ITC; credit notes issued after that timeframe cannot be used to adjust tax and need not be declared on the portal.
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Provisions expressly mentioned in the judgment/order text.
Return of time expired drugs: options to treat as fresh supply or issue credit note, affecting input tax credit and reversal.
Registered suppliers (other than composition taxpayers) may treat return of time expired goods as a fresh supply, issue an invoice at the original supply value, and enable the recipient to claim Input Tax Credit subject to Section 16. Composition taxpayers must issue a bill of supply and pay composition tax with no ITC to recipient. Alternatively, suppliers may issue a credit note under section 34; if issued within the section 34(2) timeframe and uploaded, tax liability may be adjusted provided the recipient has not availed or has reversed ITC; credit notes issued after that timeframe cannot be used to adjust tax and need not be declared on the portal.
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