Purchase Return to out of State

Hello Sir / Ma'am,

I am Savan Kasliwal. I do have family business of wholesale Grocery in Aurangabad, Maharashtra.

I have purchased Rice from Delhi in the month of December - 2020. However, material quality found very bad at the time of material delivered. At the same time, I intimated to the supplier that not possible to unload the material as material quality is very bad. But supplier told me that, please unload the material in your premises and supplier will sale that material to other customer. But supplier didn't contact till August - 2021 and now he got other customer for the same goods.

Now material delivered to other customer. But now supplier / broker is asking for "Sales Invoice: for the same material which I have been purchased in the month of December - 2020.

Originally transaction is goods return but supplier is asking Sales Invoice due to complicated documentation process.

My question is that, in the above scenario what should I do?

Should I raise Sales Invoice and should I raise Goods Return Note?

Please suggest me asap.

Thanks and Regards,

Savan Kasliwal

91-9421685760

91-8087887080

Replies (2)
Quick Summary
A wholesale grocer purchased rice from Delhi in December 2020, but the quality was poor upon delivery. The supplier agreed to find another buyer, which eventually happened in August 2021. Now, the supplier is requesting a Sales Invoice for the original December 2020 purchase, despite the transaction being a goods return. The grocer is seeking advice on whether to issue a Sales Invoice or a Goods Return Note.

The ideal practise is to issue a credit note for such kind of transactions. However, as per section 34(1) the recipient has choice to issue a credit note. Therefore, an invoice can also be issued for the same. Both transactions have same tax effect. 

Issued credit note on this regards

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