How are goods received when goods are returned

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When returning goods sold via an e-way bill, a new e-way bill is mandatory for the movement of goods. The party causing the movement, or the transporter, generates this e-way bill. The seller is responsible for issuing a credit note to the buyer. If the seller is collecting the returned goods, they should raise a credit note on the buyer and prepare an e-way bill based on this credit note to facilitate the return.

ARUN GUPTA

ARUN GUPTA (Querist)

23 November 2021 Wr had sold goods to a party by eway bill. Now the party is returning the goods. When goods will be returned by the party is it mandatory to issue eway bill. Who will generate eway bill? Who will generate credit or debit note? If eway bill required to be generated which documents details need to be given in eway bill. Please clarify?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 November 2021 Yes, e-way bill needs to be generated for any movement of goods. Therefore, even in case of sales returns, the e-way bill needs to be generated and in this situation, e-way bill needs to be generated by that person who is causing movement of such sales return or the transporter who is actually moving the goods.

Use delivery challan for return of goods.
Credit note to be given by the seller of goods.

ARUN GUPTA

ARUN GUPTA (Querist)

23 November 2021 We don't use delivery challan. Does credit note will work with eway bill. Pl clarify?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 November 2021 Yes, obtain credit from seller and use it.

ARUN GUPTA

ARUN GUPTA (Querist)

24 November 2021 I am the seller and I will be making movement of goods. I have to issue debit note? Pl advise

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 November 2021 You are the buyer returning the goods, so obtain credit note