Rejected goods sent back to composite scheme supplier

[Narendra Soni]

We (GST registered manufacturer) received goods from composite scheme supplier, the said good is rejected by us, how to bill him t the time of sending rejected goods to him. whether to charge GST or not in tax invoice.

AI Summary

Manufacturer Returns Rejected Goods: Use Bill of Supply or Credit Note for GST Compliance, As Per Circular No.72 A GST-registered manufacturer received goods from a composite scheme supplier, which were rejected. The manufacturer inquired about billing the supplier when returning these goods. Responses advised that a composition dealer should issue a bill of supply without charging GST. The manufacturer should also issue a bill of supply when returning goods. Alternatively, the supplier could issue a credit note, and the manufacturer could use a delivery challan for the return. Circular No.72 provides guidance, suggesting credit notes and delivery challans for returns, applicable beyond just expired goods, ensuring safe transit and compliance with GST regulations.