Goods are damaged/expired while receiving by the recipient dealer. Goods are not returned to the supplier but the supplier issues non inventory credit memo at certain percentage as damage compensation purpose.
In this situation what will be the GST impact in all modes ?
Debate on GST: Damaged Goods and ITC Reversal Under Section 34 of CGST Act. Credit Note vs. Non-Inventory Memo. A discussion on a forum revolves around the Goods and Services Tax (GST) implications when goods are damaged or expired upon receipt by a dealer. The supplier issues a non-inventory credit memo as compensation, rather than returning the goods. Participants suggest that the supplier should issue a credit note, and the recipient should reverse the Input Tax Credit (ITC) if already claimed. Opinions differ on whether damaged goods equate to sales returns. Some argue that only ITC reversal is needed, while others emphasize that the supplier should raise a credit note as per Section 34 of the CGST Act. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
