Sales return as purchase is it correct in gst?

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CA Parul Saxena (Querist)
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04 September 2019 Now a days our various vendors starts practice of treating Sales return as Sale to us and we are bound to treat it as purchase.
Whether any notification has been issued in this regard please clarify?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 September 2019 Circular No. 72/46/2018-GST may be seen.

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CA Parul Saxena

CA Parul Saxena (Querist)
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06 November 2019 But it is for specific product. Our co is dealing in chemicals. Please clarify whether it is correct to treat it as purchase?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 November 2019 Yes as per GST law it has to be treated as purchase.

CA Parul Saxena

CA Parul Saxena (Querist)
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07 November 2019 where it is written in GST law that sales return is to be treated as purchase? Then what is the use of Debit/credit note it is just for Discount adjustments?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 November 2019 The credit note must be issued and declared within the specified time-

By September of the next financial year
OR
Date of furnishing of the relevant annual return,
-whichever is earlier.
Beyond the above limits sales return has to be treated as purchase.

CA Parul Saxena

CA Parul Saxena (Querist)
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08 November 2019 But our customers are issuing purchase invoice for every sales return even in within time limit. Like a sale was made on 29th oct 19 and customer returned on 2nd nov by way of issuing a purchase invoice.
Then what to do?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 November 2019 Account it as purchase. Advice them to issue credit note.

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