TaxTMI 
TaxTMI 
Material rejected by Buyer of Rajasthan and we have issued a credit note to same. Further we have sold this same materials to another buyer to Gujrat and issue a new invoice with E waybill from Rajasthan to Gujrat.Is it ok ? please advice.
Material Rejected by Buyer and same materials sold to another buyer
02 Feb 2026 
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Material rejection and resale require a credit note, a new tax invoice, e way bill, and correct GST reporting.
Issue a credit note to adjust the original tax liability for the returned goods and treat the subsequent sale as a new taxable supply requiring a new tax invoice and a fresh e way bill; document buyer rejection and credit note acceptance, disclose the original invoice particulars on the new invoice where appropriate, ensure any required reversal of input tax credit by the original recipient, and report the adjustments in GSTR-1 and related returns. (AI Summary)
Issue a credit note to adjust the original tax liability for the returned goods and treat the subsequent sale as a new taxable supply requiring a new tax invoice and a fresh e way bill; document buyer rejection and credit note acceptance, disclose the original invoice particulars on the new invoice where appropriate, ensure any required reversal of input tax credit by the original recipient, and report the adjustments in GSTR-1 and related returns. (AI Summary)