01 December 2019
Can any body explain circular no. 72/46/2018 for returning of goods becouse of time expired of goods. i am trader purchase medicine 100+18 and sold to next retailer 120+21.6 now sometime retails return me goods throw a credit note of rs 120+21.6 and i return goods to manufacture at 100+18 credit note. II SITUATION : Retails return goods with no gst credit note of rs 120 so i return goods to manufacture ar rs 100. what ITC I need to return in both the case. HOW TO SHOW THESE TRANSACTION IN BOTH CASES IN GSTR-3B.
01 December 2019
First & foremost - In GST , credit note will be issued by the supplier & not the recipient. Your retailer or even you as a recipient to your manufacturer can not issue credit note .
Circular 76 gives two option - Option 1 - Recipient can return goods and treat it as fresh supply .
In your case , you retailer will show as fresh supply 120+21.60 and you are eligible for ITC and you send to manufacturer as fresh supply 100+18 and manufacturer can claim ITC
Second option - your manufacturer will issue credit note on you and you will raise credit note on your retailer . You retailer will reverse ITC of 21.60 & you will reverse ITC of Rs 18
In my view , 1st option is better and simple to use
02 December 2019
I am Confused with reversed word. I case : credit note with itc i reduced sell pries & tax payable & itc by issuing credit note & reduced purchase value & itc by acceptance credit note. i need to reversed the credit other than that. II Case : credit note without itc i paid tax on sale & received the itc on purchased and amount adjusted with party with credit note than even i need to reversed any credit.
02 December 2019
In option 1 - you need not to reversed any credit . It will be treated fresh supply .
In option 2 - I will try to explain with an example :- First between yo and manufacturer . Since you are recipient , when you purchased , you must have paid Rs 18 as GST and also availed ITC of Rs 18/- . When you return this to your manufacturer , he will raise credit note and you need to reverse 18 ( as availed by you earlier at the time of purchase ) Same way , your customer must have availed ITC of Rs 21.60 at the time of purchase and need to reverse when he will return and you will issue credit note to him
03 December 2019
If you are returning good and raising invoice as fresh supply and not issuing credit note , need not to reverse credit note but pay GST as a normal supplier
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