02 September 2019
Please tell me what to do. Our customers returns material and they are showing in their GSTR1 as Sales to us. Is this practice correct? Whether we should also record this Sales return as Purchase?
02 September 2019
This is the industry practice which is currently being followed. In case your customer is not issuing any credit note for the sales return and instead, they are raising an invoice and reflecting in their GSTR 1, then in your books you can take the credit of the GST charged and reduce your sales for the gross amount. So, the entry would be sales account debit, GST input account debit and customer account credit.
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