Credit note in gst for moisture fluctuation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2018 CAN ANYONE GUIDE ME AS TO WHETHER CREDIT NOTE CAN BE ISSUED DUE TO OF MOISTURE FLUCTUATION LOSS AND WHETHER GST ON THE SAME CAN BE ADJUSTED ASSUMING NO TAX INCIDENCE HAS BEEN PASSED TO ANOTHER PERSON AS THE PRODUCT AS VANISHED DUE TO MOISTURE FLUCTUATION.

OR
IT IS THAT WE CANNOT ADJUST GST AS THERE IS NO RETURN OF GOODS AND ITS LOST DUE TO MOISTURE FLUCTUATION

YOUR EARLY REPLY WILL BE HIGHLY APPRECIATED

SHUBHAM SHARMA

SHUBHAM SHARMA (Expert)
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20 December 2018 Sir,
In accordance with provision of section 34(1) of the CGST act, a credit note can be issued when goods or services supplied by the supplier are found to be deficient. Hence , as in the instant case, the goods provided by the supplier are found to be deficient on account of being vanished due to moisturization hence, it can be interpreted that the condition for credit note has been satisfied.
THUS, IN MY HUMBLE OPINION CREDIT NOTE COULD BE ISSUED IN THE INSTANT CASE.

Thanks and regards
CA SHUBHAM SHARMA
GST PRACTITIONER
CONTACT NO. 9462302922

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2019 Thank you for guidance.
One last query is in any case if the supplier and customer is mutually agreed and ready to not adjust the GST amount in credit note, will it be okay?

SHUBHAM SHARMA

SHUBHAM SHARMA (Expert)
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03 January 2019 Sir, in my humble opinion if the receiver is about to avail ITC then a question might arise with respect to input tax credit for the value of goods which are vanished on account of moisturization, as those goods are not actually received and it is a voilation of section 16

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