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goods return

RAVINDER KUMAR (B.Com) (115 Points)

23 December 2017

one of my buyer to whom i sold in old regime in vat 2 years back now he returning goods in gst how to account in the so called goods return

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9 Replies

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 23 December 2017

As per my view.,
You ll ask it Sales Bill (GST) instead of Debit Note...

RAVINDER KUMAR (B.Com) (115 Points)
Replied 23 December 2017

but sir he has not provided me any document and returned the goods over letter head and i issued him credit note is this acceptable or not

RAVINDER KUMAR (B.Com) (115 Points)
Replied 23 December 2017

but sir he has not provided me any document and returned the goods over letter head and i issued him credit note is this acceptable or not

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 26 December 2017

As per my view.,
It's not correct for receiving letter head...

Ayyasamy (GST Practitioner) (346 Points)
Replied 26 December 2017

Dear Sir,

it is not a sales rertun. get the sales invoice form the dealer and account it

Goods Return

Goods returned within 6 months of the date of sale-Sec 8A (b) provides that if goods are returned by buyer within six months, its sale price will be deducted from ‘aggregate sale price’, if satisfactory evidence is produced before sales tax authority in respect of the same.

Dy.CST v.Motor Industries Co (SC); (1983 (2) TMI 251 - SUPREME COURT OF INDIA)

State of Maharashtra v.BASF (India) Ltd (SC).(1994 (3) TMI 346 - SUPREME COURT OF INDIA)

Rejected Goods

Goods rejected-in such case, the period of six months is not applicable, as in case of rejected goods, there is no ‘complete sale’ at all within the meaning of CST Act or Sale of Goods Act, as the purchasing party has not accepted the goods. Return of goods is a bilateral transaction brought about by consent of seller and purchaser, while rejection of goods is a unilateral transaction, open only to purchaser. It means that sale has not taken place to attract tax.

Metal Alloy Co.(P) Ltd. V. CTO, Bhavanipur Charge calcutta (1977);

State of Tamilnadu v. General Engineering Stores(1993)