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Treatment of expired goods return.

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ARCHIT CHONGDAR

n.a

54 Points Posted on 22 June 2020

Need Guidance on treatment of expired medicine returned to manufacturers..

Medicine expired and returned to manufacturers by whole seller.

date of original invoice was before 18 months..

The Manufacturer has issued credit note in books of accounts as The original goods was supplied more than 18 months ago the supplier could not upload the credit notes in GSTR 1

And He did not adjust the tax on credit note from GST liability of 3B.

Now the coufusion is

whether the manufacturer have to reverse the input tax credit which was claimed for manufacturing the original product?

Replies (2)

Quick Summary

This discussion addresses the complex GST implications when a manufacturer receives expired medicines back from a wholesaler. The core issue is how to handle credit notes for goods invoiced over 18 months ago, as the supplier cannot upload these to GSTR 1. Key questions revolve around whether the manufacturer needs to reverse the input tax credit claimed on the original product manufacturing, with reference to Circular 72/46/2018 GST.