Sales return of salable & expired medicine in gst.

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This query is : Resolved

Deepak Mishra (Querist)

02 August 2019 Respected Sir,
I am an accountant in a pharma trading company, and my query is :-
* if, I sold medicines to purchaser on November 2018 and I received sale return of these goods in month of july 2019. so sir how should i treated of this activity in GST. may i take ITC on against this.

AND

*if i also received expired medicine as a sales return so sir how should i treated of this activity in GST. may i take ITC on against this.

CA Anita Bhadra

CA Anita Bhadra (Expert)

02 August 2019 circular no. CBEC/20/16/04/2017-GST dated 26th October 2018, has laid down the procedure which can be followed in case of return of time expired drugs.

In case , expired medicines are being returned by the registered person , it will be treated as fresh supply by the said person . He will raise invoice with applicable rate and you can take ITC on it .

In case of composite dealer , he will raise bill of supply and pay tax at applicable rate . In this case , recipient can not take ITC

Unregistered person will not charge any GST on returned medicines

For further details refer
https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular-No-72_New.pdf;jsessionid=D18D1F21599AF23EF2CC25AE03C61CE1

https://www.indiafilings.com/learn/return-of-expired-medicine-under-gst/

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