Question2:

We are manufacturer of Textiles Fabrics and Polyester Yarn and registered under GSTN. We have supplied the goods to our client and while transit the same consignment met an accident and the goods were damaged. Due to this we have brought the consignment in full return back to our factory. We request you to please guide how to re-credit the Tax discharged at the time of supply under Tax invoice raised to the client, as the goods are not received by the client, he may not issue any debit note for the same.

Answer:

Section 34 of CGST Act,2017 provides that where the goods supplied are returned, then the supplier may issue a credit note to the recipient. You should declare the details of the credit note in the return for the month during which credit note has been issued and the amount of tax paid will be re-credited in credit ledger of the supplier and amount of tax payable will be reduced accordingly during the next month. (Reply dt. 09/11/2017)