Answer

1. F

   Facts

   Record the return in your sales register and issue a credit note to registered buyers. This reduces your tax for the period in which you report it.

2. P

   Provisions and law

   • Sec 34, CGST Act 2017Credit notes for goods returned or price reduced, with time limit
   • Rule 56, CGST Rules 2017Details of records: supplies, stock, advances, tax paid, ITC and names of suppliers and buyers, kept at each place of business
3. A

   Analysis

   Sec 34 allows a credit note for returned goods and sets a time limit. Example: you sold goods for ₹20,000 plus ₹3,600 GST to a registered retailer in May and half came back in June; issue a credit note for ₹10,000 plus ₹1,800 and report it in June. For walk-in returns with refunds, note them in the daily register with the original bill number.

4. C

   Conclusion

   1. 1Record the return with the original bill number.
   2. 2Issue a credit note to a registered buyer.
   3. 3Update stock for the returned goods.
   4. 4Report the credit note in GSTR-1.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.