Company A sold material in July 17 worth ₹ 100000/- @18% GST - of ₹ 18000/- was charged and out put liability has been discharged
Now in Sept 17 the material was returned back by the recipient B in Oct 17 under challan as a supply
Company A took ITC in Nov 17 in 3B of the returned material but did not show it as purchase instead shown in GSTR-1 as credit note however in 3B credit note was not shown and the and accordingly liability not adjusted
this is a case of itc taken in 3B on return material, but corresponding credit note shown in GSTR-1 however credit note not adjusted in 3B
how above is to be disclosed in the GSTR-9 by company A
Company Faces GST Filing Issue Over Returned Goods; Corrective Steps Advised for GSTR-9 and ITC Reversal in Section 7H A company faced an issue with reporting a returned material transaction in their GST filings. Initially, they sold goods in July 2017, collected GST, and discharged the output liability. The goods were returned in October 2017, and the company claimed Input Tax Credit (ITC) in November 2017 but recorded it incorrectly in their filings. They showed it as a credit note in GSTR-1 but did not adjust it in GSTR-3B. Experts advised that the disclosure in GSTR-9 depends on the accounting treatment, suggesting rectification in Part II of GSTR-9 and potential ITC reversal in section 7H if needed. (AI Summary)
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