Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 02 July 2021
The time Expired Goods are Drugs or Medicine & such practice of return of expired goods are done in pharmaceutical sector
Generally such goods return back to manufacture & the same are destroy by manufacturer.
As per Section 34(1) of CGST Act the supplier can issue the Credit Note where the goods are return back by Recepient. , Thus the Manufacturer supplied goods to Wholesalers/Retailer , issue Credit Note in relation to time Expired goods return by the Recepient (wholesaler/Retailer) . In such scenario the Recepient deliver the Expired goods to manufacture on Delivery Challan.
It may be noted if the credit note issued
within the *TIME LIMIT specified in section 34(2) CGST Act , the tax liability may be adjusted by Supplier (Manufacturers) & ITC need to be reversed by Recipient (Wholesaler/Retailer)
However if the time limit specified in said section is lapsed, a credit note may still be issued by supplier for such return of goods but the Tax liability cannot be adjusted & ITC cannot reversed . so there is no requirement to declare such credit note on Return (GSTR1 3B)
* Time limit : Adjustment of CNTs issued prior to the month of September following the end of FY
Note :
The alternative method to return the time Expired goods is by issuing fresh tax invoice for details kindly refer Circular 72/46/2018 GST , DT. 26/10/2018