Circular to clarify the procedure in respect of return of time expired drugs or medicines.

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..... , H.P 4. The Asstt. Commissioner of State Taxes and Excise, Incharge Distt. Kinnour, H.P Dated Shimla-9 13th March, 2019 Madam/Sir, Subject: Circular to clarify the procedure in respect of return of time expired drugs or medicines. Various doubts have arisen on the procedure to be followed in respect of return of time expired drugs or medicines under the GST laws. The issues raised in the said representations have been examined and to ensure uniformity in the implementation of the law across the field formations, in exercise of powers conferred under section 168 of the Himachal Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as the "HPGST Act") I hereby clarify the issue in succeeding paragraphs. 2. The common trad .....

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..... ied in Section 16 of the HPGST Act. b) In case the person returning the time expired goods is a composition taxpayer, he may return the said goods by issuing a bill of supply and pay tax at the rate applicable to a composition taxpayer. In this scenario there will not be any availability of ITC to the recipient of return supply. c) In case the person returning the time expired goods is an unregistered person, he may return the said goods by issuing any commercial document without charging any tax on the same. d) Where the time expired goods which have been returned by the retailer/wholesaler are destroyed by the manufacturer, he/she is required to reverse the ITC availed on the return supply in terms of the provisions of clause (h) of .....

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..... mber following the end of the financial year and those issued after it. a) It may further be noted that if the credit note is issued within the time limit specified in sub-section (2) of section 34 of the HPGST Act, the tax liability may be adjusted by the supplier, subject to the condition that the person returning the time expired goods has either not availed the ITC or if availed has reversed the ITC so availed against the goods being returned. b) However, if the time limit specified in sub-section (2) of section 34 of the HPGST Act has lapsed, a credit note may still be issued by the supplier for such return of goods but the tax liability cannot be adjusted by him in his hands. It may further be noted that in case time expired goods .....

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