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Breakage & Expiry

26 September 2020

We Issue A Credit Note For Expired Goods.. I want To Know Should We Charge GST On That Or Not.. And If GST Is Charged Then The Buyer Should Reverse ITC For the same?

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 September 2020

#In case Goods return back within 6 month from end of financial year in which such Goods sold :

than Buyer of Goods, when return that Goods to you, buyer have to issue debit note along with GST.(So, he Reverse the ITC taken) And against that Debit note received with returned / expired Goods you have to issue Credit Note and can reduce your output tax liability in respective month.

# In case Goods return back after 6 month from end of financial year in which such Goods sold :

than you can not issue credit note, So in that case buyer have to issue Sales Invoice for that Goods along with GST and you can take credit of same.

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