GST ON DAMAGED GOODS
This query is : Resolved
23 June 2026
WHENEVER RETURN DAMAGE GOODS TO SUPPLIER . THEY DENIED TO RETURN THE GST AMOUNT. WHY IT IS HAPPENED. WHAT IS THE LEGAL RULE AND ACCOUNTING TREATMENT .. PLEASE SUGGEST
23 June 2026
The Rule: Returns should ideally be handled via a Tax Credit Note issued by the supplier under Section 34 of the CGST Act, which allows them to adjust the GST.
The Reason for Denial: The supplier might refuse because the legal time limit (November 30 of the next financial year) has passed, or they are unwilling to adjust their GST filings.
The Impact on Buyer: Even if the supplier denies the GST refund, the buyer must reverse the Input Tax Credit (ITC) since the goods were returned. The unrefunded GST amount should be debited as a business expense/loss in the accounting books.
The Reason for Denial: The supplier might refuse because the legal time limit (November 30 of the next financial year) has passed, or they are unwilling to adjust their GST filings.
The Impact on Buyer: Even if the supplier denies the GST refund, the buyer must reverse the Input Tax Credit (ITC) since the goods were returned. The unrefunded GST amount should be debited as a business expense/loss in the accounting books.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Eway bill for machinery reparing
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Building and other construction workers welfare cess act 1996
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Gift of mutual fund units to daughter
- TDS ON CASH WITHDRAWALS...
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
