A Company has sold some products for ₹ 20 lacs and discharged GST on same
Subsequently after 3 months the recipient B sends back certain material of ₹ 2 lacs under GST invoices after charging gst
Company A on return of material took credit of the ₹ 2 lacs returns based on invoice received on return and did not show as sales return in its GSTR-1
Is above treatment correct
Company Failed to Issue Credit Note for Returned Goods; Should Reflect Return in GSTR-1, Not as New Supply. A company sold products worth 20 lacs and paid GST on the transaction. Three months later, the recipient returned goods valued at 2 lacs with GST invoices. The company took credit for the returns based on the invoice but did not record it as a sales return in GSTR-1. The consensus among the forum replies is that the company should have issued a credit note and reflected the return in GSTR-1. Although practically challenging, the correct procedure involves issuing a credit note rather than treating the return as a new supply. (AI Summary)
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