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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)
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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 online

Aashok Kumar Sharma

(Expert)
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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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