Inter state Purchase from Dealer(GST cancelled)
This query is : Resolved
28 February 2020
Hi,
We are a equipment manufacturer located in Bangalore, one of our dealer located in Bihar, this dealer GST has been cancelled, now we want bring back our stock to Bangalore from dealer location. can we raise a self invoice with IGST & bring back these material to Bangalore ?.
Please examine any one.
We are a equipment manufacturer located in Bangalore, one of our dealer located in Bihar, this dealer GST has been cancelled, now we want bring back our stock to Bangalore from dealer location. can we raise a self invoice with IGST & bring back these material to Bangalore ?.
Please examine any one.
28 February 2020
In my view, a better way to issue the credit note and get back your stock.
01 March 2020
Dear Shri Naveen Kumar, you have to issue Credit note against this transactions, self invoice can't solve the purpose.
02 March 2020
Dear both, thank for your reply.
the stock is more than 1.5 years old, how can we issue the credit note. Credit note can be issued within the one year of invoice, as per my knowledge.
the stock is more than 1.5 years old, how can we issue the credit note. Credit note can be issued within the one year of invoice, as per my knowledge.
01 August 2024
For bringing stock back from a dealer whose GST registration has been canceled, you will need to handle the situation carefully to comply with GST regulations. Here's a detailed approach:
### **Handling Stock Return from a Dealer with Canceled GST Registration**
1. **Raising Self-Invoice:**
- **Self-Invoice:** Since the dealer's GST registration is canceled, the dealer cannot issue an invoice. Therefore, you, as the recipient, can issue a self-invoice to document the movement of goods.
- **IGST Application:** When bringing the stock from Bihar to Bangalore (an interstate movement), you should raise a self-invoice and charge IGST on the value of the goods being transferred. This is because the movement of goods between states is subject to IGST.
2. **Documentation Requirements:**
- **Self-Invoice Content:** The self-invoice should contain all necessary details such as the description of goods, quantity, value, GST details (IGST in this case), and the reason for raising the self-invoice.
- **Transportation Documents:** Ensure that you have proper transportation documents and waybills (if applicable) for the movement of goods.
3. **Credit Note for Old Stock:**
- **Credit Note Timing:** You are correct that generally, a credit note should be issued within one year of the original invoice date. Since the stock is more than 1.5 years old, issuing a credit note might be challenging if the original invoice date exceeds this period.
- **Accounting Treatment:** If a credit note cannot be issued due to the time limitation, you may need to account for the stock in your books as follows:
- **Reverse the Input Tax Credit (ITC):** If you had claimed ITC on the stock originally, you might need to reverse it in your GST returns as the goods are no longer in your possession.
- **Adjust Inventory:** Adjust the inventory records to reflect the return of stock.
4. **GST Compliance and Reporting:**
- **GST Returns:** Ensure that the self-invoice and the IGST charged are properly reported in your GST returns. You will need to include the details of the self-invoice in your GSTR-1 and claim any eligible ITC in GSTR-3B.
- **Cancellation of GST Registration:** Since the dealer's GST registration has been canceled, ensure that any ITC claimed earlier related to the dealer’s invoices is adjusted as per GST rules.
5. **Consult with a GST Professional:**
- **Professional Guidance:** Given the complexity of GST regulations and the specifics of your case, it’s advisable to consult a GST professional or tax advisor. They can help ensure that you comply with all legal requirements and handle any specific nuances in your situation.
### Summary:
- **Self-Invoice:** You can raise a self-invoice with IGST for bringing back the stock from the dealer’s location.
- **Credit Note:** Credit notes are typically issued within one year of the invoice date. If it's not possible, adjust inventory and ITC accordingly.
- **Documentation:** Ensure all documentation and GST reporting are accurate and comply with regulations.
Handling stock returns from a dealer with canceled GST registration requires careful documentation and compliance with GST laws to avoid issues.
### **Handling Stock Return from a Dealer with Canceled GST Registration**
1. **Raising Self-Invoice:**
- **Self-Invoice:** Since the dealer's GST registration is canceled, the dealer cannot issue an invoice. Therefore, you, as the recipient, can issue a self-invoice to document the movement of goods.
- **IGST Application:** When bringing the stock from Bihar to Bangalore (an interstate movement), you should raise a self-invoice and charge IGST on the value of the goods being transferred. This is because the movement of goods between states is subject to IGST.
2. **Documentation Requirements:**
- **Self-Invoice Content:** The self-invoice should contain all necessary details such as the description of goods, quantity, value, GST details (IGST in this case), and the reason for raising the self-invoice.
- **Transportation Documents:** Ensure that you have proper transportation documents and waybills (if applicable) for the movement of goods.
3. **Credit Note for Old Stock:**
- **Credit Note Timing:** You are correct that generally, a credit note should be issued within one year of the original invoice date. Since the stock is more than 1.5 years old, issuing a credit note might be challenging if the original invoice date exceeds this period.
- **Accounting Treatment:** If a credit note cannot be issued due to the time limitation, you may need to account for the stock in your books as follows:
- **Reverse the Input Tax Credit (ITC):** If you had claimed ITC on the stock originally, you might need to reverse it in your GST returns as the goods are no longer in your possession.
- **Adjust Inventory:** Adjust the inventory records to reflect the return of stock.
4. **GST Compliance and Reporting:**
- **GST Returns:** Ensure that the self-invoice and the IGST charged are properly reported in your GST returns. You will need to include the details of the self-invoice in your GSTR-1 and claim any eligible ITC in GSTR-3B.
- **Cancellation of GST Registration:** Since the dealer's GST registration has been canceled, ensure that any ITC claimed earlier related to the dealer’s invoices is adjusted as per GST rules.
5. **Consult with a GST Professional:**
- **Professional Guidance:** Given the complexity of GST regulations and the specifics of your case, it’s advisable to consult a GST professional or tax advisor. They can help ensure that you comply with all legal requirements and handle any specific nuances in your situation.
### Summary:
- **Self-Invoice:** You can raise a self-invoice with IGST for bringing back the stock from the dealer’s location.
- **Credit Note:** Credit notes are typically issued within one year of the invoice date. If it's not possible, adjust inventory and ITC accordingly.
- **Documentation:** Ensure all documentation and GST reporting are accurate and comply with regulations.
Handling stock returns from a dealer with canceled GST registration requires careful documentation and compliance with GST laws to avoid issues.
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