RETURN OF DAMAGED MATERIALS under gst

[SUBHASISH SARKAR]

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 

AI Summary

Credit notes for returned goods: supplier must issue linked credit note to adjust GST liability, and replacements are taxable.
Supplier should issue a credit note linked to the original tax invoice to adjust GST on returned expired or damaged goods; recipients who availed input tax credit must reverse it. Replacement goods are treated as a fresh outward supply requiring a new tax invoice and GST unless exempt. A delivery challan may be used to transport returned goods, but it does not substitute for the credit note or invoice requirements, and duplicate documentation for the same return should be avoided.