eway bill

In case of return of goods by the purchaser:

• Supplier will issue a credit note.
• E-Way bill will be generated by the supplier based on the credit note as inward transaction under sale return.

Here, debit note issued by the recipient, for purchase return, is not a relevant document for GST purpose.

As per sec. 34(1) of the CGST Act

“Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed.”

As per sec. 34(3) of the CGST Act

“Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing such particulars as may be prescribed.”

Credit note and debit note has to be issued by the supplier.

Credit or debit note issued by the recipient, say for accounting purposes, is not a relevant document for GST purposes.

So, the recipient cannot issue a debit note for return of goods. At best, he can treat the return of goods as an outward supply and raise a tax invoice in this regard which would make the issuance of credit note from the supplier irrelevant.