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

Composition dealer invoice restrictions: supplier to issue credit note on returned goods; GST liability adjusts and no ITC claim.
When a registered dealer's supply to a composition-scheme dealer is partly returned, the registered supplier should issue the credit note and upload it to reduce GST liability; composition dealers are not authorised to issue tax invoices or debit notes with tax components and cannot claim input tax credit, and reporting in B2C and portal matching routines may affect electronic adjustment.