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GST rate on Goods Returns time old rate vs new rate food

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This query is : Resolved

satender (Querist)

01 May 2026 Now gst on food product in 5%. we sale goods in 2023 at gst rate of 12% and this goods has come to us as a return in 2026. so at what gst rate we should book the return in our system.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

01 May 2026 Since the original goods were sold in 2023 at 12% GST, the sales return/credit note should be linked with the original invoice and booked at the original GST rate of 12%, not the current 5% rate. Section 34 credit note is issued in relation to the original supply. However, since the return is happening in 2026, the time limit for reporting a GST credit note and reducing output tax liability for FY 2023-24 may already have expired. Therefore, practically, a commercial/financial credit note may be issued without GST adjustment. Alternatively, if the buyer is registered and treats the return as fresh outward supply, they may issue a tax invoice at the current applicable GST rate of 5%, subject to facts and agreement between parties.

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