GST - DEBIT NOTE FOR REJECTION MATERIALS

[SAFETAB LIFESCIENCE]

Dear Experts,

We need on clarification. When we sending Raw Materials rejection materials (partly or fully) to the Original Suppliers, what documents should we send alongwith the consignment. Hope we have to send Debit Note with GST. If we raise our Debit Note, shall we have to raise only through E-Invoice.

If we raise Debit Note via Einvoice mode, it will be automatically reported in GSTR-1, Is it? But we should adjust/reverse the duty in our GSTR-3B as Purchase Return and we should not report that DN in GSTR-1 and increase the liability as like as outward supply. For our Purchase Return if we raise DN under Einvoice mode and if it is auto poulated / reported in GSTR-1, shall we remove that entry in GSTR-1 manually and file GSTR-1 ? and shall we adjust/reverse the same in our GSTR-3B.

AI Summary

Guidance on Documenting Rejected Goods Returns: Tax Invoice vs. Debit Note for GST Compliance A company inquired about the appropriate documentation for returning rejected materials to suppliers under GST regulations. They asked whether a Debit Note (DN) should be issued through E-Invoice and how it affects GSTR-1 and GSTR-3B filings. Responses varied: one expert suggested issuing a Tax Invoice for returned goods, eliminating the need for a DN. Others recommended issuing a DN with a Delivery Challan, which does not require an E-Invoice, and advised reversing credit based on the supplier's Credit Note. Additional advice included ensuring contracts cover returns and understanding the implications of supplier non-compliance with GST filings.