purchase return for composition dealer under GST

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sreejith (Querist)
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19 October 2017 How to solve the following scenario : A composite dealer purchased a product of rs 1000 with 100 rs GST, later this person needs to return the goods to the supplier. How to do so ? Please note that the composition delaer cannot collect tax or take tax credit of input.

RAJA P M

RAJA P M (Expert)
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19 October 2017 Purchase: Rs. 1000 + 100 = 1100

Will give Debit Note Rs. 1100...

So, Simple

Ask next doubt...!!

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CA Altamush Zafar

CA Altamush Zafar (Expert)
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19 October 2017 The supplier will have to give debit note

RAJA P M

RAJA P M (Expert)
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19 October 2017 Sorry to say... Supplier ll give Credit Note... (I'm waiting for Querist reply. So I'm not telling this one)

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CA Altamush Zafar

CA Altamush Zafar (Expert)
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19 October 2017 My mistake, the supplier will give credit note

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Rajannaidu

Rajannaidu (Expert)
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20 October 2017 In this case Supplier has to give the credit note for 1000+ GST Rs.100, The credit note should contains related information regarding transaction made with vendor with tax. Supplier is entitled to take ITC of RS.100 on the strength of credit note.
Credit note can be issued in the following situations
a. The supplier has erroneously declared a value which is more than the actual value of the goods or services provided.
b. The supplier has erroneously declared a higher tax rate than what is applicable for the kind of the goods or services or both supplied.
c. The quantity received by the recipient is less than what has been declared in the tax invoice.
d. The quality of the goods or services or both supplied is not to the satisfaction of the recipient thereby necessitating a partial or total reimbursement on the invoice value.
e. Any other similar reasons

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sreejith

sreejith (Querist)
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22 October 2017 if the buyer issues only a credit note how can the supplier take input credit on purchase return .?

RAJA P M

RAJA P M (Expert)
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22 October 2017 Don't be confused Brother... Buyer ll be give Debit note to Supplier. Also it's inward supplies for Supplier's hand. He take ITC in Sales return (Debit Note)

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sreejith

sreejith (Querist)
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23 October 2017 thanks . got it

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RAJA P M

RAJA P M (Expert)
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23 October 2017 Really good and Appreciate You Dear.. Also You are most welcome...

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