TaxTMI 
TaxTMI 
RETURN OF DAMAGED MATERIALS under gst
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....ETURN OF DAMAGED MATERIALS under gst <br> Query (Issue) Started By: - SUBHASISH SARKAR Dated:- 17-9-2025 Goods and Services Tax - GST <br> Got 2 Replies <br> GST<br> <br> 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 sa....
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....me 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 --Reply By: Sadanand Bulbule The Reply: 1. Return of expired/damaged goods by cus....
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....tomer: When a customer returns goods, the supplier (you) can issue a credit note under Section 34 of the CGST Act. The credit note should be linked to the original tax invoice. This allows you to reduce your GST liability (provided the recipient has not already availed ITC, or if availed, they reverse it). 2. No re-entry of goods into inventory: Since the goods are expired/damaged, you may n....
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....ot take them back into stock. Still, issuing a credit note is the correct procedure to adjust the original sale. 3. Replacement of goods: If you supply replacement goods, it is treated as a fresh outward supply. You need to issue a new tax invoice for the replacement goods and charge GST as applicable. You cannot supply replacements under zero tax (unless specifically exempted by law).....
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.... 4. Delivery challan use: If the customer returns goods, they may use a delivery challan to send the expired/damaged goods back. You can accept them without paying GST again, because they are just being returned, not sold. --Reply By: Shilpi Jain The Reply: Either you issue a credit note or the customer issues invoice for returned goods. Having both these documents issued is not cor....
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....rect. The 2nd scenario is fine. <br>***<br> Discussion Forum - Knowledge Sharing....