SALES RETURNED UNDER GST

[SURYAKANT MITHBAVKAR]

We are manufacture of pharma machinery. We have cleared machine to customer located in Kolkata in month of June-17 with payment of Excise Duty & Central Sales Tax.

Now, our customer has rejected the machine and he wants to return the same to us.

Please note that customer is registered under GST is a branch of foreign Company. The customer is not able to issue any documents for the returned goods except delivery challon.

How to the settle the transaction under GST.

[Ganeshan Kalyani]

The customer is suppose to raise tax invoice deeming it as a supply. You have to account as purchase or by way of credit note.

AI Summary

Sales return under GST requires a tax invoice for the returned supply; supplier must account via purchase or credit note. The recipient must treat the returned goods as a supply by issuing a tax invoice; a delivery challan alone does not substitute for that invoice. The supplier should account for the return either as a purchase or by issuing a credit note to adjust tax and consideration in GST records.