TREATMENT OF REJECTED GOODS

[ARPIT OJHA]

Hello everyone,

My query is how to account for the rejected material by the purchaser in Books of Account. The purchaser is denying to issue Debit Note / Rejection Memo. Sale Invoice has already been raised.

AI Summary

Handling Rejected Goods Under GST: Issue a Credit Note When Purchaser Refuses Debit Note or Rejection Memo A user inquired about accounting for rejected goods under GST when the purchaser refuses to issue a Debit Note or Rejection Memo. Experts advised issuing a credit note, as per GST laws, which allows sellers to issue Credit Notes/Debit Notes. This reduces the seller's output tax liability if the recipient also adjusts their Input Tax Credit (ITC). The user expressed concern about nullifying the transaction if the purchaser does not account for the goods. Experts reassured that issuing a credit note would suffice for transaction nullification. The discussion concluded with gratitude for the advice provided.