INPUTS RETURN

[TAX solution]

Dear Experts

We have purchased some inputs goods and same has been rejected by our quality control department. Now, we want to send back to vendor.

My queries are

1. How to send goods to vendor? Whether through Tax Invoice or Challan or Debit note.
2. Whether we have to reverse ITC or credit /increase to tax liability?
3. When purchased return to vendor , purchase return in which GSTR return should be reported by us, whether GSTR- 1 or GSTR-2 .
4. Who will sign the tax invoice? Any intimation is required to tax authority, if any employee is authorized for sign to tax invoices?

Please provide related sections /Rules

Thanks in advance

AI Summary

Debate on Returning Rejected Goods Under GST: Credit Note Issuance and Compliance Procedures Discussed A discussion on a forum revolves around the process of returning rejected goods to a vendor under the Goods and Services Tax (GST) framework. Participants debate whether to use a tax invoice, challan, or debit note for the return. It is advised that a credit note should be issued by the supplier, which will adjust their liability and be reported in GSTR-1. The credit note must be signed by an authorized signatory, and its entry in the Common Portal system serves as intimation to the tax authorities. Compliance with these procedures is crucial to avoid penalties.