GOODS RETURNED BY COMPOSITE DEALER TO REGISTERED DEALER

[ROHIT GOEL]

REGISTERED DEALERS SOLD GOODS WORTH RS. 10,000/- TO COMPOSITE DEALER AND GST OF 5% CHARGED RS. 500/- TOTAL VALUE RS. 10,500/-

COMPOSITE DEALER OUT OF ABOVE INVOICE RETURNED GOODS WORTH RS. 4000/- TO REGISTERED DEALER THROUGH DEBIT NOTE. REGISTERED DEALERS ISSUES A CREDIT NOTE FOR THE SAME.

CAN COMPOSITE DEALER REFLECTS GST IN DEBIT NOTE.

AI Summary

Composite Dealers Cannot Include GST in Debit Notes; Credit Notes Must Be Issued by Selling Dealers A registered dealer sold goods worth Rs. 10,000 to a composite dealer with a 5% GST, totaling Rs. 10,500. The composite dealer returned goods worth Rs. 4,000 via a debit note, and the registered dealer issued a credit note. The main query is whether the composite dealer can reflect GST in the debit note. Responses indicate that composite dealers cannot raise debit notes with tax components, and the selling dealer should issue and upload credit notes. Since composite dealers cannot claim Input Tax Credit (ITC), their GST liability is adjusted accordingly. The discussion also touches on GST filing extensions and system improvements.