TaxTMI 
TaxTMI 
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.
Rejected goods sent back to composite scheme supplier
06 Mar 2020 
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Return of rejected goods to composition supplier: issue credit note and use delivery challan; bill of supply limited to expired goods.
Preferred procedure for returning rejected goods from a composition scheme supplier is issuance of a credit note by the supplier and return of goods by the buyer under a delivery challan (with e way bill as required). Alternatively, for time expired medicines the supplier may issue a bill of supply treating the return as a fresh supply at composition rate, but such bill of supply treatment disallows input tax credit to the recipient. (AI Summary)
Preferred procedure for returning rejected goods from a composition scheme supplier is issuance of a credit note by the supplier and return of goods by the buyer under a delivery challan (with e way bill as required). Alternatively, for time expired medicines the supplier may issue a bill of supply treating the return as a fresh supply at composition rate, but such bill of supply treatment disallows input tax credit to the recipient. (AI Summary)