Return of Expired Medicine Under GST

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This query is : Resolved

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When expired medicines are returned, suppliers can issue a credit note to reverse the GST liability. The recipient can return the goods using a delivery challan. If the supplier then destroys these expired goods, they must reverse any input tax credit (ITC) claimed on the inputs used to manufacture them.

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Querist)
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05 October 2021 How do we treat this? Supplier should issue the credit note and reverse the GST ?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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05 October 2021 The supplier can issue a credit note where the goods are returned back by the recipient as per Section 34(1) of CGST Act, 2017. The manufacturer or the wholesaler who has supplied the goods to the wholesaler or retailer, as the case may be, has the option to issue a credit note in relation to the time expired goods returned by the wholesaler or retailer. The retailer or wholesaler may return the time expired goods by issuing a delivery challan. The time expired goods, which have been returned by the retailer/wholesaler, are destroyed by the manufacturer, he/she is required to reverse the ITC attributable to the manufacture of such goods.

Udaya Chandran

Udaya Chandran (Expert)
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05 October 2021 Supplier can issue credit note, take the delivery of goods sent by recipient, reduce the GST liability in his returns. And when the expired goods are destroyed, he would be required to reverse the ITC availed on inputs used for supply of such destroyed goods.

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