dear sir
we have dispatched the material to customer, but during transit materials damaged so custimer has refused to collect the delivery. how to take a itc credit or cancal the invoice?
accident material return
Replies (9)
ask your party to prepare debit note
party not agree for debit and also party has not taken itc. our customer is electricity board..
they must provide you rejection memo . return the matrial with this docs.
customer has given rejection memo, so how take take itc. may be invoice cancel. please guide me.
As per section 17 of CGST Act - Apportionment of Credit or blocked credit.
if Goods are lost, stolen, destroyed, written off or disposed off by way of gift or free samples.
ITC already claimed at the time of purchase of above goods has to be reversed.
IN YOUR CASE - Goods sold to customer has been destroyed / damaged and returned back to you thru rejection memo.
ANALYSIS:
1. As the customer refused to accept the Delivery,
he has not considered it as purchase in his books.
2. as per point 1 it has not taken any ITC.
3. you are not obliged to pay gst liability on sale of goods as the same was not accepted by the customer and rejected. Thus, your invoice stands cancelled.
4. As per section 17 (quoted above) you need to reverse the ITC claimed at the time of purchase on such damaged goods.
if Goods are lost, stolen, destroyed, written off or disposed off by way of gift or free samples.
ITC already claimed at the time of purchase of above goods has to be reversed.
IN YOUR CASE - Goods sold to customer has been destroyed / damaged and returned back to you thru rejection memo.
ANALYSIS:
1. As the customer refused to accept the Delivery,
he has not considered it as purchase in his books.
2. as per point 1 it has not taken any ITC.
3. you are not obliged to pay gst liability on sale of goods as the same was not accepted by the customer and rejected. Thus, your invoice stands cancelled.
4. As per section 17 (quoted above) you need to reverse the ITC claimed at the time of purchase on such damaged goods.
just cancel your invoice. and no pay any GST against that
SIR, WE HAVE DISPATCHED VEHICLE TO DESIRED CONSIGNEE BUT IN TRANSIT VEHICLE MEET WITH ACCIDENT. NOW WE ARE RETURN BACK MATERIAL . WHAT IS THE PROCESS. PLEASE ADVISE.
Read more at: https://www.caclubindia.com/forum/accidental-material-return-process-material-is-in-transit-514975.asp
Read more at: https://www.caclubindia.com/forum/accidental-material-return-process-material-is-in-transit-514975.asp
SIR, WE HAVE DISPATCHED VEHICLE TO DESIRED CONSIGNEE BUT IN TRANSIT VEHICLE MEET WITH ACCIDENT. NOW WE ARE RETURN BACK MATERIAL . WHAT IS THE PROCESS. PLEASE ADVISE.
Read more at: https://www.caclubindia.com/forum/accidental-material-return-process-material-is-in-transit-514975.asp
Read more at: https://www.caclubindia.com/forum/accidental-material-return-process-material-is-in-transit-514975.asp
SIR, WE HAVE DISPATCHED VEHICLE TO DESIRED CONSIGNEE BUT IN TRANSIT VEHICLE MEET WITH ACCIDENT. NOW WE ARE RETURN BACK MATERIAL . WHAT IS THE PROCESS. PLEASE ADVISE.
Read more at: https://www.caclubindia.com/forum/accidental-material-return-process-material-is-in-transit-514975.asp
Read more at: https://www.caclubindia.com/forum/accidental-material-return-process-material-is-in-transit-514975.asp
SIR WHAT ABOUT THE E WAY BILL PROCESS
PARTY DEFUSED TO TAKE DELIVERY
With rejection note issues credit note to customer, and reverse the ITC.
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