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Purchase return under gst

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sagar

account manager

30 Points Posted on 04 July 2026

GST EXPERTS PLEASE HELP!!!

I WANT TO KNOW WHETHER MY ACCOUNTING TREATMENT FLOW FOR PURCHASE RETURN IS CORRECT

I MAKE A PURCHASE RETURN IN THE MONTH OF JULY TO MY SUPPLIER HE DOESNT ISSUE ME A CREDIT NOTE WHICH REFLECTS IN MY IMS DASHBOARD, HOWEVER I VOLUNTARILY REDUCE THE ITC IN THE TABLE 4(B)2 OF ITC REVERSAL IN THE 3B , NOW WHEN AUGUST MY SUPPLIER FILES HIS CREDIT NOTE IT SITS IN MY IMS DASHBOARD I SIMPLY ACCEPT THE CREDIT NOT BUT WITH "NO" FOR REVERSAL FEATURE THUS THIS DOESNT REDUCE MY ITC TWICE PLUS MY SUPPLIER GET THE LIABILITY SETOFF FOR THE RETURN I MADE

IS THIS CORRECT PLEASE HELP

Replies (3)

Quick Summary

A taxpayer asked whether ITC should be voluntarily reversed in GSTR-3B for a purchase return before the supplier issues a credit note. The discussion focused on avoiding double ITC reversal when the credit note is later accepted through the IMS dashboard.

Aashok Kumar Sharma

Finance/Compliance Consultant

75675 Points Posted on 04 July 2026

Summary: Your current process of manual reversal plus accepting the credit note leads to double-reversal. Instead, skip the manual GSTR-3B entry and use the IMS "Accept" feature, selecting "Yes" for reduction if you haven't reversed it, or "No" if you already did.

sagar

account manager

30 Points Posted on 05 July 2026

Sir thank you for your response , what you have pointed out about using the ims feature to accept and then use 'NO' for reversal of ITC I do precisely that

However in the month I have returned the goods to my supplier I voluntarily reduce itc by showing that in table 4(B)2 ITC REVERSAL of 3B now is that part correct showing the purchase return in the ITC REVERSAL when there was no credit note in the IMS ,