Export Return (Back to Town) - GSTR1 Treatment

[Praveen Nair]

Dear Experts

Finished goods are sent to Sea/Air port for Export purposes. Due to technical reasons the material doesn't qualify for export at port and hence is returned back to factory. No Shipping Bill is prepared. Material is returned with the Tax Invoice.

Whereas GSTR-1 for the month was filed showing Export Sales of the consignment mentioned above without Shipping Bill Details.

Kindly advise the effect of the Export Sales Return in GSTR-1 in subsequent month. How should we show return unlike raising Credit Note for B2B sales?

Thanks, Pravin Nair

[CSSANJAY MALHOTRA]

Credit note is the option and requirement under GST.

[Alkesh Jani]

Sir, again one question arises that how to cancel the Invoice which is already shown in GSTR-1.

[YAGAY andSUN]

Through issuance of credit note the invoice so issued can be cancelled.

[YAGAY andSUN]

The Complete procedure for Back to Town (BTT) of Factory Stuffed Constrainers as stated in the JNCH Public Notice No. 28 / 2016.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of CS Sanjay Malhotra.

AI Summary

Credit note requirement cancels an export invoice reported in GSTR-1 when goods are returned without a shipping bill. When goods reported as export in a filed GSTR-1 are returned to the factory without a shipping bill, the supplier must issue a credit note to cancel the original invoice and adjust outward supplies in subsequent returns; port-specific back-to-town procedures govern the physical return but GST reversal is effected via the credit note.