Goods and Services Tax – 72/46/2018 – Dated:- 26-10-2018 – Circular No. 72/46/2018-GST F. No. CBEC/20/16/04/2017-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing New Delhi, Dated the 26th October, 2018 To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All) The Principal Directors General/Directors General (All) Madam/Sir, Subject: Circular to clarify the procedure in respect of return of time expired drugs or medicines – Reg. Various representations have been received seeking clarification on the procedure to be followed in respect of return of time expired drugs or medicines under the GST laws. The issues raised in the said representations have been examined and to ensure uniformity in the implementation of the law across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the Central Goods and Services Ta
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
osition taxpayer), he may, at his option, return the said goods by treating it is as a fresh supply and thereby issuing an invoice for the same (hereinafter referred to as the, return supply ). The value of the said goods as shown in the invoice on the basis of which the goods were supplied earlier may be taken as the value of such return supply. The wholesaler or manufacturer, as the case may be, who is the recipient of such return supply, shall be eligible to avail Input Tax Credit (hereinafter referred to as ITC ) of the tax levied on the said return supply subject to the fulfilment of the conditions specified in Section 16 of the CGST Act. b) In case the person returning the time expired goods is a composition taxpayer, he may return the said goods by issuing a bill of supply and pay tax at the rate applicable to a composition taxpayer. In this scenario there will not be any availability of ITC to the recipient of return supply. c) In case the person returning the time expired good
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
he would be required to reverse ITC of ₹ 15/- and not of ₹ 10/-. (B) Return of time expired goods by issuing Credit Note: a) As per sub-section (1) of Section 34 of the CGST Act the supplier can issue a credit note where the goods are returned back by the recipient. Thus, the manufacturer or the wholesaler who has supplied the goods to the wholesaler or retailer, as the case may be, has the option to issue a credit note in relation to the time expired goods returned by the wholesaler or retailer, as the case may be. In such a scenario, the retailer or wholesaler may return the time expired goods by issuing a delivery challan. It may be noted that there is no time limit for the issuance of a credit note in the law except with regard to the adjustment of the tax liability in case of the credit notes issued prior to the month of September following the end of the financial year and those issued after it. b) It may further be noted that if the credit note is issued within the t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
y the retailer/wholesaler, are destroyed by the manufacturer, he/she is required to reverse the ITC attributable to the manufacture of such goods, in terms of the provisions of clause (h) of sub-section (5) of section 17 of the CGST Act. This has been illustrated in table below: Date of Supply of goods from manufacturer/ wholesaler to wholesaler/ retailer Date of return of time expired goods from retailer / wholesaler to wholesaler / manufacturer Treatment in terms of tax liability & credit note Case 1 1st July, 2017 20th September, 2018 Credit note will be issued by the supplier (manufacturer / wholesaler) and the same to be uploaded by him on the common portal. Subsequently, tax liability can be adjusted by such supplier provided the recipient (wholesaler / retailer) has either not availed the ITC or if availed has reversed the ITC. Case 2 1st July, 2017 20th October, 2018 Credit note will be issued by the supplier (manufacturer / wholesaler) but there is no requirement to upload
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =