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Returned Goods

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Kaustubh Ram Karandikar

Corporate Consultant- Central Excise &am

20 Points Posted on 10 July 2020

In March’20, XYZ supplied goods to a customer and GST was paid on it but due to lockdown goods were lying with transporter’s godown. Now, in July’20 the customer is refusing to accept the delivery and therefore XYZ wants to bring it back to their registered premises from the transporters godown. Sir, in my view, XYZ need to prepare Delivery Challan and E – Way Bill and bring back the goods. As regard to GST already paid to govt., strictly speaking XYZ need to claim for the refund since they cannot issue credit note nor they can adjust the amount from this months liability under this situation. Kindly guide.

Replies (6)

Quick Summary

This discussion addresses the Goods and Services Tax (GST) implications when a customer refuses delivery of goods supplied in March 2020 due to the lockdown. The goods are currently at a transporter's godown. The consensus is that XYZ needs to issue a Delivery Challan and E-Way Bill to bring the goods back. Since GST was already paid and the goods are being returned, a credit note cannot be issued in this scenario. XYZ must claim a refund for the GST paid on these returned goods.

CA Rashmi B

Assistant Manager

20 Points Posted on 10 July 2020

The Credit note can be raised if goods is retured undelivered.

SURAJ SHARMA

Junior accountant

20 Points Posted on 10 July 2020

Sir your march GSTR3B filed or not ?

Kaustubh Ram Karandikar

Corporate Consultant- Central Excise &am

20 Points Posted on 10 July 2020

Yes sir, GSTR - 3B is filed. But as suggested by you under which provision credit note can be issued? in my view there is no such provision for this situation. Your views please.