POST GST - ON SALES RETURN GOODS WHAT WILL BE GST CHARGE OLD GST OR NEW GST

[Rajnikant Patel]

POST GST - ON SALES RETURN GOODS WHAT WILL BE GST CHARGE OLD GST OR NEW GST

EX. : GOODS PURCHASED BEFORE 22ND SEPT25 AT 12% BUT AFTER 22ND SEPT25 SEPT25 GST WILL BE 5%.

IN SUCH CASE IF THERE IS SALES RETURN THAN WHILE MAKING CREDIT NOTE WHAT GST WILL BE REIMBUSED 12% OR 5%?

[KASTURI SETHI]

12 %. Whatever you have charged, that very amount of tax has to be paid back.  It is a SALE-RETURN and NOT sale. 

[Rajnikant Patel]

THANKS SIR FOR GIVING CLARITY

[K.lakshmipati rao]

Q. POST GST - ON SALES RETURN GOODS WHAT WILL BE GST CHARGE OLD GST OR NEW GST.

Ans. (i) In my opinion, if the said transaction of original supply of Goods was B2B, then, Credit Note towards the present rate of GST for the subject transaction would be applicable at the time of receipt of Return of Goods, since earlier ITC @ 12% would have already been claimed by the recipient as per GSTR-2B.

(ii) In case of transaction of original supply of Goods was B2C, then, Credit Note towards the consideration received for the subject value of goods be given.

[Shilpi Jain]

In credit note, the GST rate should be the same as in oiginal invoice.

[K.lakshmipati rao]

Dear Ms. Shilpi Jain-

I agree your reply. This is situation (1) - Supplier shall issue CN towards Return of Goods with the same Rate of GST charged in the original supply Invoice.

Situation (2) - If the Buyer of Goods will issue Tax Invoice [Instead of waiting for Supplier CN]- towards Return of Goods under E-Way Bill for the same consignment dispatched.

Though this transaction is exclusively for Return of Goods, however, would deem to be independent Sale/Supply between Retailer and Original supplier. As such, prevailing rate of GST [applicable after 22-09-2025] at the time of delivery of goods would be applicable, and not as charged in the Original Invoice. Request your confirmation please.

AI Summary

GST rate on sales returns: credit notes should match the original invoice rate, with limited exceptions.
Applicability of GST rate on returned goods: one position requires the supplier to refund the exact tax amount originally collected so the credit note mirrors the original invoice GST rate. Alternate views note that for B2B supplies the current rate may apply because the recipient already claimed input tax credit, while in B2C cases the credit should reflect the consideration. If the buyer issues a tax invoice for return, that invoice may attract the prevailing GST rate at issuance.