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
Suppliers must issue GST credit notes under Section 34 for returned goods and reflect them in returns and accounts promptly If customers return sold goods, the supplier should issue a credit note under GST to reduce the original taxable value and reverse the output tax liability (section 34 framework); the credit note must be reflected in returns and accounting within prescribed time limits. Treat returns sent by delivery challan as movement of goods with appropriate documentation, but the tax effect flows only when a credit note is issued. Replacements are generally a fresh supply and, unless exempt or specifically zero-rated, should attract GST and be supported by a tax invoice; treating replacements as zero-tax without legal basis is risky. Ensure compliance with invoicing, credit-note timelines, and return filings to avoid liability. (AI Summary)
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