GOODS NOT ACCEPTED BY BUYER

[GIRISH LOKHANDE]

Dear Sir,

I raise a bill to customer in the month of May & shipped the goods to his address by issuing invoice & e way bill. On receipt of goods at his door step, he refuse to take delivery & return from his gate due to any reason. since goods were supplied on valid purchase order but a condition comes now where buyer is not interested in delivery due to his over burden liability. He refuse to accept the goods & reject using his documents.

now since I prepared the documents, goods removed from my premises lying at transporter godown with invoice & e way bill.

Now please advise whether credit is available to me if I brought back in premises, can I issue the goods to some other customer from transporter godown.

[Renju Joy]

Upload in GSTR-1, also show in credit note table.

[GIRISH LOKHANDE]

Can we brought back this goods on delivery challan from transporter godown or our invoice & e way bill is sufficient documents for return. In this case we are not able to generate e way bill again on same invoice.

Can we sell this goods to any other buyer on fresh invoice, from transport godown. In that case can we upload self credit note without receiving goods physically.

[DR.MARIAPPAN GOVINDARAJAN]

In my view you can sell the products from the transporter godown.

[Nayan Sharma]

I understand that this is the case where the goods are returned without issuance of any GST compliant document by the customer. Moreover, the goods are at the transporter's godown instead of the premises of supplier of goods.

Movement from transporter godown: As the customer has refused to perform any movement of the goods, the responsibility of causing GST compliant movement has fallen on the supplier. Considering that the movement of goods is for "reasons other than supply"(as return of goods is neither a sale or a purchase), therefore Delivery challan should be issued by the supplier for movement from the godown to his own premises. E way bill could be issued based on that Delivery challan.

Regarding credit eligibility for the return of goods: A credit note could be issued by you, Section 34 of the CGST Act allows issuance of credit note where the goods are returned by the customer. The supplier can reduce the tax liability to the extent covered in the credit note, provided that the customer has reversed/not availed any credit on the original supply. Hence, it is to be noted that the benefit could be taken, by reduction of tax liability rather than by availment of ITC.

Issuance of goods to other customer from the transporter's godown: Performing supplies from a location not covered in the registration certificate of the supplier is not allowed. However, this hindrance also offers its own solution. If the transporter's godown is added as an additional place of business in the supplier's GST registration, then supplies could be made from that registration. However, it is recommended to clearly indicate the bill from location and the ship from location on the invoice and e way bill.

[Ganeshan Kalyani]

I agree with the views of the experts.

1. Raise a Credit Note with GST on your customer.

2. Show this in GSTR-1 and net it off in GSTR-3B, so that your liability is reduced.

3. Add the transporter godown as an additional place of business in your GSTIN. This will enable you to raise Tax Invoice on supply of that goods to another customer.

4. E-way bill on fresh supply will be generated by mentioning - Bill from : your location, Ship From : transporter godown.

[GIRISH LOKHANDE]

Dear Sir,

Thanks you very much to all,for answers with accuracy, is it a mandatory part to add transport godown as business place on which we are not having any control.

If any verification call from GST official may put in to the soup. Since this is the time where many supplier is getting bankrupt & goods sent of DOOR DELIVERY AGAINST CONSIGNEE COPY may not be released by customer. In this case every godown is to be added in additional place of business. is it provided in law to add the same.

AI Summary

Credit note for returned goods enables tax liability reduction; deliver via delivery challan and update GST returns accordingly. When goods are refused by the buyer and remain at a transporter's godown, return movement should be documented as movement for reasons other than supply by issuing a delivery challan and corresponding e way bill. Tax liability may be reduced by issuing a credit note under Section 34 and reporting it in GSTR 1 and GSTR 3B, provided the recipient has not claimed input tax credit. To effect onward sale from the transporter's godown, that godown must be added as an additional place of business in the supplier's GST registration, with invoices indicating bill from and ship from locations.