Treatment of purchase return

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ANIMESH PANDEY (Querist)
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15 February 2018 Dear Sir,
We have purchsed a raw material in march'2017(before GST) but since this is of Sub-standard quality , We decided to return that to the supplier in Feb'2018( after GST ).

Now my question is what should be its treatment ? That time we have taken input of VAT but now when we are returing GST has come ?
I have done the following treatment:-

Party ----- Dr Rs.110
To Purchse return Rs.100
To Input VAT Rs.10
Accordingly I paid that input VAT reversed to Govt.

Is this treatment is correct or needs to be improved ??

ND (Expert)
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15 February 2018 No. This is not correct. You should raise a tax invoice and charge GST on it. By GST, earlier credit is automatically reversed.

ANIMESH PANDEY

ANIMESH PANDEY (Querist)
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15 February 2018 Sir can u explain it in more details . Actually I am confused a bit .

Arpit

Arpit (Expert)
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15 February 2018 Party A/C Dr
TO Purchase Return
TO Gst Payable

RAJA P M

RAJA P M (Expert)
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15 February 2018 Yes... I Agreed to Mr. MD...

Mr. ANIMESH PANDEY.,

If you Prepare the Debit Note as per Your way then Where you show the details of Debit Note? & Which Tax Regime...?

RAJA P M

RAJA P M (Expert)
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15 February 2018 In case You will prepare Debit Note under VAT then You and Supplier can't show it in VAT return.

But,
Better way as You follow Mr. MD's Advice. It's peacefully for both of You...

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