REVERSAL OF ITC ON PURCHASE AND SALES RETURN OF GOODS

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K.Balamurugan

K.Balamurugan (Querist)
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14 February 2020 Kindly specify the time limit for reversal of ITC on purchase returns and sales returns

CA Anita Bhadra

CA Anita Bhadra (Expert)
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16 February 2020 For Sales Return, the supplier needs to issue a credit note and time limit for issuing credit note is 20th Oct of the following year ( due date of filing return for Sep of the following year)

For purchase return, the recipient can not issue a debit note and it is advisable that he will return the goods under fresh invoice and pay the tax on such returned sale. Automatically, ITC on purchased return will get reversed.