Purchase Rejection procedure in GST, Goods and Services Tax - GST

[Yatin Bhopi]

Sometimes we received defective goods which need to be return to seller. For rejecting goods, under Section 34 of CGST ACT 2017, supplier of goods should issue credit note and he should declare this credit note in GSTR-1. Once seller uploads credit note, GST amount will be reflected in our GSTR-2 it will be reduce our available ITC.

Is that mean for every purchase rejection we need to First avail the Input tax credit (whether full or part rejection) so that when seller issue credit note it will be nullify.

Please let me know

Posts / Replies

[Arumugam Ravikumar]

Sir,

Is there any way we can recovery the value to the extend of rejection material value without Supplier Credit note by raising a document against the Supplier of Goods. Any provision?

[bhanu agarwal]

Dear sir,

As per GST Act DC is used only for the following purposes:-

• Goods being supplied on approval
• Goods being transported for job work
• Goods being transported for reason other than supply. Example: Transportation of goods from one warehouse to another warehouse of the supplier.
• Goods supply: Where the quantity of goods supplied is not known. Example: Supply of liquid gas, where quantity of supply from the place of supplier is not known at the time of supply.
• Transportation of goods in a semi-assembled state

so how can we used DC for the purpose of returning goods to supplier.