Gst input reversal..

hi, please help to get this point, we manufactured goods with MRP and sale to the distributors, we get input tax and pay outward liability accordingly. At this point all is good.

After-sale distributors used goods as samples and expiry goods returned to us, we issued credit note to the distributor with gst. Now after the credit note issue we need to reverse input on it or not.

if yes, then how do we calculate reversal input, our purchase is 18 and 12 % and the sale gst is 28%.
Replies (4)
Quick Summary
This discussion addresses the complexities of GST input tax credit reversal when dealing with returned expired or sample goods. The original poster manufactures beverages, selling them to distributors and paying outward GST. When distributors return expired goods, a credit note is issued. The core question is whether input tax credit needs to be reversed on these credit notes and how to calculate it, especially given differing GST rates on purchases and sales. The consensus suggests that input tax credit must be reversed proportionally for expired goods that will be written off, according to GST rules.

Are you dealing in pharmaceutical products
U Supply goods with MRP,u collected gst on MRP,u issued credit not,disributer prepare debit note with gst as per ur credit note.No problems.

If a sales depot in manufacturing unit, transfer the same with debit note , issued credit note against u by sales depot.

Since you have received expired products which you will destroy or writeoff ITC will have to be reversed proportionately as per GST rules

Not in pharmaceutical, we are dealing in the beverage.
in the case of sampling, do we also need to reverse the input?
and how do we calculate the input reverse amount?

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