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

Credit note issuance for returned goods requires supplier reporting and matching to reverse input tax credit across returns.
When rejected goods are returned the supplier issues a credit note and declares it in returns for the month of issue (or by the September following year-end or annual return filing date). The supplier's output liability is reduced and the recipient must reduce or reverse the corresponding input tax credit; these adjustments are matched through the return reconciliation process. The supplier reports the credit note in GSTR 1, the credit note/tax invoice must be signed by the authorized signatory recorded in the GST system, and entry on the common portal functions as intimation to authorities.