an hospital purchased materials from a supplier by paying gst ( but not utilised as it is exempted ). But upon return of such goods will gst be applicable. ?
can it be argued this return can be considered to be a fresh supply and thereby gst be applied?
GST is applicable when there is a supply of taxable goods. In the case mentioned above, you are returning a good purchased whereas not making a taxable supply.
Without prejudice to the above, if the Dept. alleges that the same is a taxable supply, you shall still be exempt from payment of tax or taking registration therein, so far as such goods are sold/purchased within a state.
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