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whether gst payable or not?


RAHUL (Student)     17 August 2019

RAHUL
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In a hospital, they have bought a product by paying gst but ITC is not taken. Now they've issued a debit note to the supplier as they are returning the product. So when they are returning the product to the supplier should they pay the gst.? does it becomes a supply.?

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Pankaj Rawat (GST Practitioner)     18 August 2019

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No............., but ask supplier to issue the credit note for the same & return the goods on DC & CNT of suppliier

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RAHUL (Student)     18 August 2019

RAHUL
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but when hospital is returning the product to the supplier it becomes a supply for hospital..ryt.?

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Pankaj Rawat (GST Practitioner)     18 August 2019

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Yes ... only case if Hospital is registered in GST.

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RAHUL (Student)     18 August 2019

RAHUL
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so you are saying that your first answer is wrong.??

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Pankaj Rawat (GST Practitioner)     22 August 2019

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No .......
If you are registered in GST then at the time of purchase you must have claimed ITC , hence ITC is to Reverse when you are returning back to supplier.

As per Section 32 of CGST Act if you are not registered , you cannot claim ITC & reverse .ITC . (cannot collect & charge GST )

Note : As per Section 34. the supplier can issue credit or Debit in GST , so in case of Returning goods to supplier ask your supplier to Issue credit Note for the same .
(then even if you are unregistered , the supplier shall Reduce his output tax liability by issuing credit note )


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