Transition Provisions

[Jasbir Uppal]

Dear Professionals

1. The goods sold in the month of June 2017 & goods return by the recipient in the month of July 2017 as per transitional provisions of Sec 142 of CGST Act, 2017. The seller can claim refund under the respective Acts i.e. Excise or VAT Act subject to issue of debit note and credit note between the both parties.

My query is on the debit note credit note the tax charged on debit/credit note is to be VAT,Excise,GST and the format of debit/credit note will be according to GST Law or previous law?

2. As per GST guidelines the composition scheme for Traders/Manufacturers or restaurant business have to obtain composition scheme up to 21 July 2017, but the GST portal is having numerous errors are coming. Are any guidelines issued by GST authorities regarding the same.

Regards

J S Uppal

[Himansu Sekhar]

Will be under central excise law

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

As per the sec 142 of GST Act, if the goods are supplied prior to GST and returned the goods post GST within six month from the date of issue of invoice, there are two situation arise B2B and B2C as follows.

1. In case B2B transaction, there is no sales return concept, if the goods return by the customer / recipient should issue their invoice and claim the input tax credit by the seller.

2. In case B2C transaction, the seller has to prove the sales return and apply refund from the earlier law.

If I'm wrong please correct me.

[Ganeshan Kalyani]

The sales return happening post GST of the goods sold pre GST then it is considered as Supply and customer has to raise tax invoice by charging applicable GST. The supplier receiving goods will be able to take the credit.

[vk agarwal]

agree with Mr kalyanasundaram and mr Kalyani

AI Summary

Goods return under transition provisions: post-GST returns of pre-GST sales affect tax treatment and credit entitlement. Goods returned after GST commencement but sold before GST present distinct transitional treatment: B2B returns require the recipient to account for adjustments and may enable input tax credit; B2C returns require the seller to substantiate the return and pursue refund or adjustment under the prior law. Some practitioners consider post-GST returns of pre-GST sales to be taxable supplies for GST invoicing so the receiving supplier can claim credit. For debit/credit notes and refund mechanics, transitional practice often follows the earlier indirect tax statute (central excise/VAT) unless authorities prescribe GST-specific formats. Composition scheme enrolment remains subject to portal functionality and formal authority guidance.