Question9:

XYZ (Customer) had returned back the goods to PQR (Supplier) which was originally cleared by the PQR on payment of GST. What procedure and documentation XYZ required to follow and what procedure PQR is required to follow?

Answer:

Provisions of Section 34 of CGST ACT, 2017 are applicable to your question. You can adopt  any of the following procedures;

(i)  If the recipient of your goods has taken credit and returns the goods for repairs then he can return the goods against his Challan and after repair you can again send the goods against Challan .

(ii)  If the goods are returned against invoice/debit note on payment of tax, then you can take credit of tax paid.  

(iii)  If goods are returned without being accepted, then on receipt of goods you will cancel the invoice and issue Credit note in the name of buyer and will take back the consignment by treating it as new receipt. After wards when the goods are supplied again, you will issue fresh invoice and make payment of applicable GST. You may follow any of the above procedures depending upon the situation discussed above. (Reply dt. 06/12/2017)