WE are a dairy farm manufacturing into sellin of Milk products,panner etc thru e_commerce platforms and also thru retailers . Some customers return us expired goods or damaged goods thru proper Tax invoice . We do not take the same into inventory but issue a credit note for the full value of the Invoice so received . No GST is charged separately . WHat will be the GST impact ?
Some customers return expired / damaged goods by delivery challan and we give them replacement material under zero tax . Is that a correct procedure under GST
Supplier must issue credit note linked to original invoice for damaged/expired returns; recipient reverses ITC; replacements are new taxable supply For returned expired or damaged goods, the supplier should issue a credit note linked to the original tax invoice to adjust the original output tax; if the recipient already availed ITC, they must reverse it. It is acceptable not to re-enter unsaleable goods into inventory while issuing the credit note. Replacement goods constitute a new outward supply, requiring a fresh tax invoice and payment of GST unless a specific exemption applies. A delivery challan may be used to transport returns. Both parties should not issue duplicate documents for the same return. (AI Summary)
TaxTMI 
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