Sometimes we received defective goods which need to be return to seller. For rejecting goods, under Section 34 of CGST ACT 2017, supplier of goods should issue credit note and he should declare this credit note in GSTR-1. Once seller uploads credit note, GST amount will be reflected in our GSTR-2 it will be reduce our available ITC.
Is that mean for every purchase rejection we need to First avail the Input tax credit (whether full or part rejection) so that when seller issue credit note it will be nullify.
Please let me know
Exploring GST Procedures for Returning Defective Goods: Credit Notes, ITC Impact, and Compliance Practices A discussion on the procedure for handling defective goods under the Goods and Services Tax (GST) framework highlights the steps required when returning such goods to the supplier. The process involves the supplier issuing a credit note, which is declared in GSTR-1, affecting the recipient's Input Tax Credit (ITC). Various participants suggest using a delivery challan and e-way bill for returning goods, while others debate the issuance of a tax invoice. The discussion also touches on the implications of credit notes and the correct accounting practices to ensure compliance with GST regulations. (AI Summary)
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