SALES GOODS REJECTED BUT NOT RETURNED BY THE BUYER

[RAJESH KUMAR]

WE HAVE SUPPLIED GOODS TO THE BUYER THROUGH TAX INVOICE. AFTER PASSING OF SIX MONTHS, THE BUYER REJECTS THE GOODS BUT NOT RETURNED TO US. WE NITHER RECEIVED ANY PAYMENT FORM THE BUYER NOR REJECTED GOODS.

CAN WE ISSUE CREDIT NOTE IN THIS REGARD FOR REVERSAL OF OUTPUT GST OR NOT.

PLEASE CONFIRM.

[PAWAN KUMAR]

Dear sir,

Please provide when supplied goods. Plz quote tax period.

[RAJESH KUMAR]

Goods sold in June-2019. Goods rejected by buyer the month of Jan-2020. Nither goods is being returned nor payment is being made by the buyer till now.

AI Summary

Credit note issuance may be sought to reverse output GST when supplied goods are rejected yet not returned or paid
Whether a supplier may reverse output GST by issuing a credit note where goods supplied under a tax invoice were rejected by the buyer but neither returned nor paid for: goods were sold in June 2019, rejected in January 2020 more than six months after supply, buyer has not returned goods or paid, and the supplier asks if a credit note can be issued for reversal of output GST; a clarification on the tax period was requested.