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Purchase return - recipient books

Return 167 views 1 replies

Dear Friends

X purchased goods from Y but now he is returning those goods to Y.

What will be treatment in the books of X?

Section 34 of CGST Act says that in this case supplier will issue credit note to recipeint.

so does X has to call Y and ask him to issue credit note.

cant X issue debit note?

on reading section 34, it appears that debit notes and credit notes under GST can be issued only by the supplier.

regards

shivani

Replies (1)
X can issue debit note. Without issuing debit note, goods can't be sent back to supplier as transportation requires some kind of invoice.

On receipt of debit note issued by X, Y will issue credit note and enter it in his GSTR1.

Credit note entered by Y, will show in GSTR2 of X automatically as a debit note issued by X.


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