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Damaged goods

imran (article) (91 Points)

14 May 2019

what the procedure in gst if damaged goods return by client

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prasad Nilugal ( GST Practitioner & Accounts ) (14163 Points)
Replied 14 May 2019

If you have issued tax Invoice & taken input tax credit then you have reverse the same , because ITC on damaged goods is under blocked credit (credit not allowed ) , as per section 17(5) (h) of the CGST act 2017 .

imran (article) (91 Points)
Replied 14 May 2019

should I issue credit note along with gst

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RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 14 May 2019

Yes...

Padmanathan Kv (2127 Points)
Replied 14 May 2019

I think you have made the sales and it is returned by the customer due to damage ie it is your sales return. in that case Credit note is mandatorily to be issued by you even if client has issued debit note.

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RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 14 May 2019

Yes... Credit note will be issued to Customer. Also it will be shown in GSTR 1 return...

The said goods related ITC will be reversible if it's no more any other sale proceeds.