GOODS RETURN UNDER GST

[SURYAKANT MITHBAVKAR]

If we sold machine in month of June-17 and customer want to sent back for repairs or rectification under GST Act.

Please explain procedure to call back material for repairs or rectification.

[Rajagopalan Ranganathan]

Sir,

If your customer is also a registered person he can return the machinery for repair, rectification etc under his invoice on payment of GST since returning the machinery for repair , rectification is also "supply" under GST Act, 2017 since according to Section 7 (1) (a) of CGST Act, 2017 “supply” includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;

[Ganeshan Kalyani]

The customer will charge GST and you will be able to take the credit.

[KASTURI SETHI]

I support the views of both experts.

[Ramakrishna M]

Learned consultants,

May Pl. share your views on the below situation...

If the goods are required to be returned by a registered dealer who can not avail credit being those P&M, equipment are used by them for generation of power which is out of the purview of GST and they are obligated to do registration because of their liability to discharge GST under Reverse Charge and procuring goods / services from inter-state. Further these goods were supplied in May 2017 and return in GST period.

Thanks

Ramakrishna

AI Summary

Supply includes returns for repair or rectification; recipient must charge GST and supplier may claim input tax credit.
Returns of goods for repair or rectification are treated as a supply under GST; a registered customer must invoice and discharge GST on the return, and the supplier receiving the goods may claim input tax credit of the GST charged, subject to the recipient's entitlement and the ordinary conditions for credit.