Goods return under sales tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2013 A IS SELLER FROM GUJARAT WHO SELLS GOODS TO BUYER B IN MAHARASHTRA FOR RS 10000/- PLUS CST @ 02% RS 200/-IN THE MONTH OF JUNE-13. SELLER A PAID CST TO GUJARAT GOVT FOR CST RS 200/- FOR JUNE-13

NOW AGAIN SELLER FROM GUJARAT SELLS GOOS FOR RS 50000/- @ 02% CST FOR RS 1000/- TO NEW BUYER-C IN MAHARASHTRA IN THE MONTH OF JULY-13. ASLO BUYER A FROM MAHARASHTRA WHO BOUGHT GOODS IN JUNE-13 RETURNED THE SOLD MATERIAL TO SELLER OF GUJARAT.

NOW WHAT WILL BE CST LIABILTY FOR JULY-13 FOR GUJARAT DEALER WHO SALES THE GOODS

WHAT IS THE EXCACT RULE OF SALES GOODS RETURN RULE UNDER CENTRAL SALES TAX FOR TAKING INPUT CREDIT OF CST FOR PAYMENT OF CENTRAL SALES TAX FOR GOODS RETURN UNDER CST ACT. CAN WE TAKE INPUT OF CST FOR PAYMENT OF CENTRAL SALESTAX

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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20 August 2013 Your question is not properly expressed. However, once the goods are sold on June 13,it will be declared in the return for the month of June. In july another sale is done to C for Rs50,000/-and Rs1000/- has been collected. When the goods sol in June are returned the return of that month is to be revised or it can be shown in the returnof July. Actual sales for July is Rs50,000/- minus sales returns Rs10,000/- = Taxable sales for July is Rs40,000/-,and tax payable is Rs800/- only,altough Rs1000/- has been collected. This method is permitted. This way the excess paid in June is adjusted in July. This arrangement is permitted if the return were sold within the previous six months only....mjk

CA PARTH SHAH

CA PARTH SHAH (Expert)
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22 June 2015 I would like to correct Mr MJ Krishnamurthy that in the VAT return gross sale has to be reported. Plus the tax paid on the returned goods sold under CST cannot be adjusted against liability of current month.

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