COMPOSITE DEALER PURCHASE AND SALE

[Kusalava InternationalLimited]

1.we sold one item to the composite supplier with tax,now the customer wants to return back the item through invoice.how can he return?If he returns through invoice the sent item cost includes cost+tax then our landing cost will be high and we loose tax on that return item?Is there any way to claim tax on return items sold to composite suppliers?

2.we want to return the purchase item from composite supplier for that we raised invoice with tax,that tax amount we are loosing because at the time of purchase we have not taken any input tax.

Is there any way to escape from tax for purchase return items to composite supplier?

[Ganeshan Kalyani]

You will have to show the sales return from composition dealer in the Credit note. Similarly for purchase return you have to show in debit note detail.

[Kusalava InternationalLimited]

Sir,

can we send goods via credit note/debit note

AI Summary

Credit note and debit note: use credit notes for sales returns and debit notes for purchase returns under GST. Where goods sold to a composition dealer are returned, record the sales return by issuing a Credit note to reverse the outward tax; where goods purchased from a composition dealer are returned after tax was paid without taking input credit, record the purchase return by issuing a Debit note to reflect the reversal and align tax accounting.