18 December 2019
Dear Experts! We had purchased the goods in 2018-19 however we had also return that said goods by Debit note in same year 2018-19 but the supplier has issue the CN thereof in November 2019 whersas the deadline was to issue CN of 2018-19 up to 30/9/2018, Pls guide as buyer what to do,
19 December 2019
You have accounted the purchase value less of return in the year ( 2018-19) in which purchase was made. You have taken GST credit only for purchase less return in the FY 2018-19. Hence accounting treatment as well as GST accounting is also correct.
But the supplier raised Credit Note now for the FY 2018-19. Hence he is not eligible to adjust the GST amount in the Credit Note while making payment to output liability ( Time limit for raising credit note for the FY 2018-19 was expired on 30.09.2019 refer section 34 (2) of CGST act . This is the issue relating to supplier and not you
19 December 2019
Sir in FY 2018-19 we have accounted only full purchase value not less return because as per sec 34 of CGST act. 2017 only supplier is permitted to issue CN Also DN not buyer hence in respect of goods return supplier CN is considerable not buyer DN! Therefore from buyer hand DN issued is irrelevant in form of stock reversal & ITC reversal!
19 December 2019
Even though the supplier has not issued credit note for the material returned, and you have taken credit for full purchase value, then you have to reverse the GST Credit at the time of returning the goods. if you have not reversed GST Credit for material return, you are liable to pay interest @ 24% per annum from the date of return till the date if reversal / payment. It is immaterial whether the supplier raised the credit note or not. I hope that you have made payment for the bill less amount returned. If it is done, at the time of receiving payment or actual receipt of returned material , the supplier is supposed to raise credit note.
19 December 2019
Sir! We will reverse the Goods as well as ITC based on valid documents which must be permitted as laid down in act. Whereas in GST act. Only supplier is permitted to issue CN not buyer nor in act. It is written that buyer is permitted to issue CN or DN in respect of claim reversal any addition or reduction. Hence as per ruling DN issued by buyer is irrelevant. In view of ruling buyer has only send the goods for return however the said goods won't be considered as return unless supplier issued the CN thereof. Also for Example if buyer send 10 Nos by DN but supplier issued the CN of 5 Nos in this case only 5 Nos shall be considered as return not 10 as per buyer DN.
19 December 2019
No , I disagree with you. Once again I repeat that once the goods is returned by you, you are suppose the reverse GST credit in proportion to return on the same day
20 December 2019
The goods recipient has right to raise debit note for short receipt, rejection of goods , rate difference between PO and invoice and on line rejection to the supplier. It is also correct not only in GST point of view but also correct in accounting point of view also. only accounting of Debit Note only stock ledger, GST ledger and vendor payable ledger will show correct picture. There is no question of specific law for raising Debit Note to the supplier for the above. It is totally unnecessary for waiting for Credit Note from the supplier for the above.
23 December 2019
As per accounting on whose invoice basis a buyer credit the supplier in his Books whether on the basis of PO or the tax invoice issued from vendor hand. Also for gst point of view who is key person for government whether supplier or buyer" obviously supplier because that is the person on whose hand tax is being paid to govt. Hence supplier collect the tax from buyer based on the tax invoice issued & remitt the same to govt. If supplier is permitted to colllect the tax than who will be permitted to reversal thereof whether supplier hand or buyer hand
24 December 2019
Even though the supplier raised the tax invoice and paid GST as per invoice. as the goods recipient, it is necessary our part to account GST credit only as per actual accepted received qty and as per PO price. We have to reverse the credit if the material is returned after acceptance ( Line rejection / On line rejection). We cannot argue that supplier is not raised credit note and the reversed GST credit. I am in manufacturing industry and the procedure is accepted by our internal and external audit also. It is up to you decide . You may also check other experts also You are asking query and replying the same. I have given enough explanations in this regard. I do not like to discuss this subject more and more wasting by time.
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