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?

AI Summary

Company Seeks Clarity on Using Credit/Debit Notes for GST Tax Issues on Returns from Composite Suppliers A company inquired about handling tax implications when returning items sold to or purchased from a composite supplier under the Goods and Services Tax (GST) framework. They faced issues with losing tax on returns since they did not claim input tax initially. A respondent suggested using credit notes for sales returns and debit notes for purchase returns to address these tax concerns. The company sought clarification on whether goods could be sent using credit or debit notes.