02 August 2019
Respected Sir, I am an accountant in a pharma trading company, and my query is :- * if, I sold medicines to purchaser on November 2018 and I received sale return of these goods in month of july 2019. so sir how should i treated of this activity in GST. may i take ITC on against this.
AND
*if i also received expired medicine as a sales return so sir how should i treated of this activity in GST. may i take ITC on against this.
02 August 2019
circular no. CBEC/20/16/04/2017-GST dated 26th October 2018, has laid down the procedure which can be followed in case of return of time expired drugs.
In case , expired medicines are being returned by the registered person , it will be treated as fresh supply by the said person . He will raise invoice with applicable rate and you can take ITC on it .
In case of composite dealer , he will raise bill of supply and pay tax at applicable rate . In this case , recipient can not take ITC
Unregistered person will not charge any GST on returned medicines
For further details refer http://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular-No-72_New.pdf;jsessionid=D18D1F21599AF23EF2CC25AE03C61CE1
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