Rejection Return of GST paid goods from Govt. agency or PSUs

[MohanLal tiwari]

Dear Experts,

We are supplying goods to various Govt agencies like Railways & defense, PSUs and private sector industries on payment of GST. If any materials gets rejected and needs to be rectified / replaced, we have to get back the materials but the Govt. Agencies and PSUs are not issuing GST Invoice for return of goods on the ground that they have not accepted & accounted for the goods (GRN not issued) and not taken any ITC credit of GST.

Kindly advise how to get back the rejected GST paid goods and replace without paying GST twice. Can we issue Credit Note against our invoice and take back the credit of GST paid and issue fresh GST Invoice while replacing the goods. In any case, customer will have nothing to do with GST portal till GSTR-2 is not operative.

AI Summary

Supplier Struggles with GST on Rejected Goods; Experts Suggest Credit Notes for Relief, Seek Systemic Clarity A supplier is facing issues with returning GST-paid goods to government agencies and PSUs, as these entities do not issue GST invoices for rejected goods, claiming they haven't accepted or accounted for them. The supplier seeks advice on avoiding double GST payment when replacing goods. Experts suggest using a credit note to reduce tax liability and issuing a new invoice for replacements. However, concerns arise as entities like Indian Railways/PSUs may not approve such adjustments on the GST portal. The discussion emphasizes the need for procedural clarity and adjustments in the GST system to address such scenarios effectively.