Find
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.
GST
Recording sales returns from customers
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Sec 34, CGST Act 2017; Rule 56, CGST Rules 2017
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.
Close
- Record the return with the original bill number.
- Issue a credit note to a registered buyer.
- Update stock for the returned goods.
- Report the credit note in GSTR-1.
Connect now
A Savvy replies in minutes.
Fixed price before you pay. Your Savvy is paid only after you accept the work.
General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.