Time limit for Goods return under GST

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Tushar Sharma

MIS cum Accounts Manager and Senior Inte

56 Points Posted on 09 September 2021

Dear All,

I have an query related to goods returns.

Suppose ABC company sale goods to XYZ Company on 1st April 2021 and XYZ return some portion of goods to ABC on 15th Oct 2021 by issuing debit note of dated 14th Oct 2021and ABC receive that goods on 30th Oct 2021, here ABC took one day to confirm the actual delivery and counting process and issue the credit note on 1st Nov 2021.

1.Is this transaction is legitimate under GST?

2.Is there any time limit for goods return?

3. We can't claim GST ITC on credit note issued for Goods return, if the goods are return by parties after 6 months from date of sale invoice?

Please Guide

Replies (5)

Quick Summary

Goods return under GST is valid if credit note is issued within time limits under section 34, generally up to November following the financial year or before filing annual return. Not limited to 6 months.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 09 September 2021

Time limit is there i.e.the sale return must be within 6 months. When the unregistered buyer returns the goods then the seller of such goods will be allowed refund of tax paid originally if ALL the following conditions are satisfied: The goods were sold maximum 6 months.

Tushar Sharma

MIS cum Accounts Manager and Senior Inte

56 Points Posted on 09 September 2021

What in case of Register buyer?

JAGANATHAN R ACMA, SAP(Fi-Co)

Manager Accounts and Finance

663 Points Posted on 13 September 2021

time limit is same to all - registered and unregistered

Vikram Choudhary

22 Points Posted on 31 July 2023

Section 34(2) of the CGST act says that any registered dealer can issue a credit note in relation to supply of goods or services up to a period of six months from the end of the financial year or the date of filing the annual return, whichever is earlier.

Now this is till 30th November from the end of the financial year or the date of filing the annual return, whichever is earlier.

Aashok Kumar Sharma

Finance/Compliance Consultant

77990 Points Posted on 06 November 2026

Correction: there is no "6 months" limit for sales returns. That limit relates to the old excise/VAT regime or to the job-work return period (Sec 143).

• The supplier (ABC) can issue a credit note for returned goods under Sec 34(1) up to 30 November following the end of the FY of the original supply, or the date of filing the annual return, whichever is earlier (Sec 34(2), from 1 October 2022).

• For an April 2021 sale returned in October 2021, a credit note can be issued until 30 November 2022 (FY 2021-22). The same rule applies whether the buyer is registered or unregistered.

• The buyer's debit note is only a commercial document. The GST effect comes from the supplier's credit note. The buyer must reverse ITC once the credit note appears in GSTR-2B (IMS).

• After the time limit: the return can still be accounted for, but GST liability can't be reduced through a credit note. The buyer can issue a fresh tax invoice for the return (as a supply back) if registered.

• Tax liability reduction is denied if the incidence has been passed on and the buyer hasn't reversed ITC (Sec 34(2) proviso).