Purchase return with different tax rate

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NAVEEN

Sr.ACCOUNTANT

261 Points Joined November 2011

what is the rule in GST for purchase return with different tax rate ?

example

we have purchase an item . Tax applicable at the time of purchase was 28 %. We have to return the item but at that time the tax rate applicable is 18%(change in tax rate ).

What in the tax rate applicable if we are returning the item with a credit note

please advice

Replies (25)

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Debit Note will be raise against the Purchase Invoice...
Charge the rate (28%) as per Purchase Invoice...

subhagan sreerangam

7059 Points Joined January 2017

You generate Debit note against the Purchase Invoice with charge of GST Rate 28% .

NAVEEN

Sr.ACCOUNTANT

261 Points Joined November 2011

Please provide the rule or notification no

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

It's normal practice and accounting procedures. Dept can't give notifications for these related activities...

NAVEEN

Sr.ACCOUNTANT

261 Points Joined November 2011

In Gst pont of tax is supply at the time of returning the item rate applicable is 18℅(time of supply) so Y 18℅ is not applicable

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

Mr. Naveen You are correct
As per Section 14 of CGST you are liable to charge 18% GST , the current prevailing rate

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Dear Mr Pankaj Rawat.,

Check out once again. The Credit / Debit note will be based (against) on the Tax Invoice only. Not on new rate of Tax...

NAVEEN

Sr.ACCOUNTANT

261 Points Joined November 2011

Mr RAJA P M
I think Unless there is no specific notifications or rule regarding Credit/Debit (Time of supply) note section 14 is applicable

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Dear, I ask how to prepare "SALES RETURN" against the sales and How to it shown in GSTR returns...? Why you refer the section, say the process....

NAVEEN

Sr.ACCOUNTANT

261 Points Joined November 2011

Mr RAJA Part Of P M
process must be supported by section/rules
I don't found any rule which support 28℅
section 12 or 14 (time of supply) doesn't give any
seperate provisions for sales retun so current prevailing tax rate is applicable am I right

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Bro...

Credit note or Debit note will be based on previous Invoice which is inward/ outward...

Better to check out the accounting process. Also the same can't give different taxes related debit x credit notes.
Bcoz, Govt can't consider tax rate changes at the time of preparing rules...

In case you/all are thinking my view is wrong then Simply go to book as per Your way...
🙏🙏🙏🙏🙏

NAVEEN

Sr.ACCOUNTANT

261 Points Joined November 2011

Dear Raja P M sir
please don't get angry
I was trying to clear my point. with you experts
I am still not able to understand what Act is saying about
purchase return with different tax rate?
or
Act is silent in this matter?