Purchase return in gst regime
Querist : Anonymous
We want to return the goods to supplier i.e. Purchase return. Pls tell me how can we send goods in return which document will be use for the same & who will issue whether buyer or supplies?
Thanks in Advance
Rajesh
It's not correct...
If create tax invoice then GP is raised without sales transaction.
Querist : Anonymous
Issuance of tax invoice with the same amount won't impact the GP
Its reflect in GP...
You can check once...
Your purchase Value is 100000 and Sale Value is 100000
If you are give Invoice Rs 1000 (apprx). Your sale value is 101000. But its not sale. Just return.. GP is raised.
If you are give Debit note Your purchase value is Less 99000... Your GP is same purchase value is less...
So, Tax Invoice used only sales/Service Transactions. Can't use it Purchase returns...
If tax tax invoice is better as Debit/Credit note then the HEAD no need anywhere...!!!
Querist : Anonymous
Let me take me take an example,
Assume we have purchase the goods of 100 now we want return the goods of 50
Case 1) if we return the goods by credit note than purchase value become reduce Hence in this case if we look GP
Purchase 100. Sale 00
Less 50
Net purchase 50. Closing stock 50
Hence GP 00
Case 2)
Assume we have issued the tax invoice of 50 than Trading a/c will be
Purchase 100. Sale 50
Closing stock 50
Hence GP will remain the same 00
Pls correct me if I'm wrong
Without sales....
Querist : Anonymous
In this case sale will unnecessarily increased that may effect the Tax audit also Therefore even I'm not in views of issuance of tax invoice however as per the Act. Debit & credit Note will be issued by only supplier not by buyer Hence buyer cannot even issue the debit Note, so in this scenario in course of purchase return what document I will send for transportation of goods
Querist : Anonymous
Pls let me know whether movement of goods transportation thereof by delivery challan is allowable however Many Advocate as well as well CA are not in fovour of sending goods by delivery challan :- let me interpreted the definition of delivery challan
As per rule 55(1) of CGST act. 2017 delivery challan may be issued in following instance.
(A) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known.
(B) transportation of goods for job work.
(C) transportation of goods for reason other than by way of supply' or
(D) such other supplies as may be notified by the board,
So My doubt is on point No. C transportation of goods for reason other than by way of supply. Whether purchase return may be categorized in this clause considering that good are being transport for return Hence it is other than by way by supply,
Also as per rule 55(4) of CGST act. 2017 relaxation is given for issuance of tax invoice following is the extract :- where the goods being transport are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply the supplier shall issue a tax invoice after delivery of goods,
Therefore in my view transportation of goods by delivery challan is legally allowed. But my question was pertain to purchase return whether goods return will also cover in the definition of supply or other than supply.
Both of you are requested to pls guide me accordingly as per the provisions of act.
in my opinion For purchase return debit note should be issued instead of sales invoice, because the seller should have to make credit note for sales return as per law. so either credit note debit note procedure to adopt or purchase or sale procedure to adopt, if we adopt purchase /sale procedure for the goods return, the law for issuing credit note would get ignored. So, as per the general accounting principals and as per credit note rules, debit note should be issued for purchase return.
Correct if i am wrong.
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