Goods return by Tax Invoice

[Shri Sasikumar]

Dear Experts,

We return the material to the suppliers with a cover of Tax Invoice and the same is included in our GSTR-1. However, the supplier also issues the credit note for the same transaction and thereby it reflects in GSTR-2B and reducing our ITC. This poses Net ITC Mismatch and a lot of reconciliation issues. Please advise any remedy. Thanks in advance.

AI Summary

GST Challenges in Material Returns: Navigating Invoice and Credit Note Complexities for Seamless Tax Credit Reconciliation A discussion forum explores GST-related challenges with goods returns. Participants address reconciliation issues arising from simultaneous tax invoice and credit note issuance during material returns. The recommended solutions include using delivery challans, establishing clear communication protocols with suppliers, and ensuring only one party documents the transaction to prevent Input Tax Credit mismatches and streamline accounting processes.