SALES RETURN

[SURYAKANT MITHBAVKAR]

We have sold material in the month of April-18 and same has been returned by party in May-19.

Can we claim goods return under GST Act.

[Alkesh Jani]

Sir,

Once material is sold the transaction is deemed to be concluded. Either payment is received or debit/credit are to be issued. If goods are returned it should bear the reason for returning the goods, such as in Chemical business the purity of chemical matters a lot. In this case, the recipient of the goods may return the goods under the cover of Invoice or he may return the goods under delivery challan and effect to the same is to be given while filing GSTR-1.

With regards

[Ganeshan Kalyani]

Yes, you can claim GST benefit on the goods return of the original sales made in April, 2018 till the month of September , 2019.

AI Summary

Sales return under GST allows tax adjustment when goods are returned, via invoice or delivery challan reflected in returns. Sales returned after a completed sale can permit GST adjustment if the return is documented with the reason and effected under the cover of the original invoice or a delivery challan, and the tax effect is reported in the seller's GSTR-1 so the liability is amended.