TMI BlogDamaged goodsX X X X Extracts X X X X X X X X Extracts X X X X ..... Goods are damaged/expired while receiving by the recipient dealer. Goods are not returned to the supplier but the supplier issues non inventory credit memo at certain percentage as damage compensation purpose. In this situation what will be the GST impact in all modes ? - Reply By AKReddy andCO - The Reply = Damage or expiry should be treated as sales returns only by the supplier and should is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue a credit note. It will be a debit note to the receiver of goods. As he up loads the credit note in the GST portal, you have to reverse the ITC if already availed. The experts may please comment on my opinion. - Reply By KASTURI SETHI - The Reply = Only reversal of ITC is required under Section 17(5)(h) of CGST Act, 2017 .No other GST implication is involved. In my view, damaged goods/expi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red goods cannot be equated with the,'sales return'. - Reply By Ganeshan Kalyani - The Reply = Goods are not returned to the supplier and you have accounted it in the books. Do not take credit. Ask the supplier to raise credit note. Thereby jis liability become nil. You as a recipient. can raise a debit note. - Reply By VIPUL SOMAIYA - The Reply = Damaged goods is a clear case of Supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly found as deficient as mentioned in Section 34 of CGST Act . As per Section 34 , only supplier is suppose to raise credit note for the same. While issuing non-inventory Debit note for the reduction in price, corresponding GST on the same also can be shown on the Debit note. The relevant GST needs to be reversed by the customer and supplier's liability will get reduced to that extent. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By KASTURI SETHI - The Reply = Agreed with Sh. VIPUL SOMAIYA Ji. - Damaged goods - Query Started By: - Bharath Kumar Dated:- 26-2-2019 Goods and Services Tax - GST - Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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