GST 3B and returns, Goods and Services Tax - GST

[Madhavan iyengar]

A Company has sold some products for ₹ 20 lacs and discharged GST on same

Subsequently after 3 months the recipient B sends back certain material of ₹ 2 lacs under GST invoices after charging gst

Company A on return of material took credit of the ₹ 2 lacs returns based on invoice received on return and did not show as sales return in its GSTR-1

Is above treatment correct

Posts / Replies

[RAHUL GAIKWAD]

No,

a company has to Show in GSTR-1 as a Reg. Credit Note.

[Ganeshan Kalyani]

This is practically done. Issuing credit note by supplier based on the intimation of returning the goods and buyer preparing delivery challenge and eway bill by giving reference to the credit note is tedious. The provision is clear but practical it has procedural difficulties. Thus some parties treat it as supply while returning and raise tax invoice with GST.

But otherwise such transaction has to be routed through credit note because a supplier cannot show as purchaser of his own goods from the customer.

[KASTURI SETHI]

Well explained by Sh.Ganeshan Kalyani Ji. Reply indicates he is beaming with full confidence.