TaxTMI 
TaxTMI 
Damaged goods
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....amaged goods<br> Query (Issue) Started By: - Bharath Kumar Dated:- 26-2-2019 Last Reply Date:- 27-2-2019 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Goods are damaged/expired while receiving by the recipient dealer. Goods are not returned to the supplier but the supplier issues non inventory credit memo at certain percentage as damage compensation purpose. In this situation what will....
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.... be the GST impact in all modes ? Reply By AKReddy andCO: The Reply: Damage or expiry should be treated as sales returns only by the supplier and should issue a credit note. It will be a debit note to the receiver of goods. As he up loads the credit note in the GST portal, you have to reverse the ITC if already availed. The experts may please comment on my opinion. Reply By KASTURI SETHI: The R....
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....eply: Only reversal of ITC is required under Section 17(5)(h) of CGST Act, 2017.No other GST implication is involved. In my view, damaged goods/expired goods cannot be equated with the,'sales return'. Reply By Ganeshan Kalyani: The Reply: Goods are not returned to the supplier and you have accounted it in the books. Do not take credit. Ask the supplier to raise credit note. Thereby jis ....
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....liability become nil. You as a recipient. can raise a debit note. Reply By VIPUL SOMAIYA: The Reply: Damaged goods is a clear case of Supply found as deficient as mentioned in Section 34 of CGST Act. As per Section 34, only supplier is suppose to raise credit note for the same. While issuing non-inventory Debit note for the reduction in price, corresponding GST on the same also can be shown on t....
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....he Debit note. The relevant GST needs to be reversed by the customer and supplier's liability will get reduced to that extent. Reply By KASTURI SETHI: The Reply: Agreed with Sh.VIPUL SOMAIYA Ji.<br> Discussion Forum - Knowledge Sharing ....