Credit note under gst

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2017 Dear Experts,
if GST is levy excess then prescribed rate supplier will issue the credit note. also if Gst is levy lower then prescribed rate supplier will issue debit note to buyer.

plz tell me if buyer is suppose to return the goods. within how many month buyer can retuen the goods and which document will be used whether debit note or credit note,

Thanks
Aashish

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 June 2017 .
Goods returned by a registered taxpayer are treated as ‘Deemed Supply’ in the hands of the original buyer (now returning the goods).
The original buyer levies GST on the Deemed Supply, and any tax previously borne by the buyer can be claimed as an input credit against the GST charged. The buyer is liable for the net amount, thus reducing losses.
The original seller can now claim the GST as an input credit, thus eliminating losses.
GST Law provides that where goods received as an inward supply is returned by the recipient to the supplier within six months from the date of the relevant invoice, the tax payable on such supplies shall be equal to the input tax credit availed earlier on such inward supply. This provision essentially ensures that if the recipient returns the goods to the supplier within six months of the date of its original supply, his tax liability on such returned goods will be the same as was at the time of the original supply. If goods are returned after six months of the date of the original supply invoice, the rate of tax applicable will be the rate prevailing on date of such return.

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