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Material return & gst

Return 245 views 3 replies

sundaram

finance manager

42 Points Posted on 04 March 2019

Sir,

Question 1

In our Pharma trading, we will be returning old stocks back to original supplier.

The stocks might have purchase one or two years back.

On returning materials , what is impact GST .

Are we need to reverse GST ?

Question 2

Suppliers giving post sale price reduction on purchase made one year back.

What is GST implication ?

Please advice

Replies (3)

Deepak Gupta

CA Student

15932 Points Posted on 04 March 2019

https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular-No-72_New.pdf

purchase return valid only for 180 days from the date of invoice raised . and in your case you purchase that stock for 2 year back .so you will sale that stock &you are not eligible to reverse ITC taken back

pritesh

CA Final student

7106 Points Posted on 04 March 2019

I think 180 days condition is only for payment of Goods.

the sale or purchase return can be made before filing September month return or annual return whichever is earlier.

according to me now govt has extended the date till 31st march..then you cam raise debit Note.