Purchase return

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This discussion clarifies how recipients should handle purchase returns for GST filings. It advises waiting for a credit note from the supplier and then reversing the Input Tax Credit (ITC) in GSTR-3B under Table 4(B) 'Others'. While no specific adjustment is needed in GSTR-1, it's crucial to reduce the claimed ITC in GSTR-3B to reflect the returned goods, especially if the credit note is delayed.

cox769

cox769 (Querist)

22 October 2020 As a Recipient of supply, I have Purchase returns in my books. How to show the same in GSTR-3B and GSTR-1 both? Kindly advice.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 October 2020 Ask your supplier raise credit note for your sales return. Show the credit note in GSTR 3 b and GSTR 1.

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cox769

cox769 (Querist)

22 October 2020 What adjustment as a recipient do i have to make from my end sir? Do i reverse the ITC in my GSTR-3B or reduce the ITC from the Total ITC claim for the period in which Purchase return is made? What would be corresponding adjustment in GSTR-1? If any?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 October 2020 Wait for credit note and do the adjustments.

Lekhraj sood

Lekhraj sood (Expert)

22 October 2020 In my view, you do not have to do anything in GSTR1.Only you have to reduce ITC in GSTR3B upon getting the credit note but if credit note getting delayed then you should reverse your ITC as you gave already returned the goods.

cox769

cox769 (Querist)

22 October 2020 Last thing is does reduction in ITC imply showing Total ITC at net amount (i.e. after deduction of ITC on purchase return from Total ITC claim) or showing ITC on purchase return in a separate row under Table 4(B) ITC reversed? I am grateful to experts for their prompt replies. Thank you.