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

GST credit adjustment: issue and upload a credit note for returned goods, then supply replacements under new invoice.
For returned goods to government agencies or PSUs, document the physical return via Delivery Challan, accept the goods back, issue and upload a credit note to reduce the supplier's tax liability and accounting, and then supply replacements under a new tax invoice; this relies on GST portal support for credit note upload and later matching by the recipient.