Example

Gagan industries purchase 2000 kg of raw material from Indus ltd on the tax invoice shown Quantity 2000 kg and value of Rs 200000 with IGST Of Rs. 36000 @18%. On quality checking of actual input material received is 1950 kg out of which 25 Kg is damaged.
(i) How to tackle the short received with respect to documentation and claim of ITC.
(ii) How to tackle returning of 25 kg of damaged goods.

Answer

(i) In case of short receipt of 50 kg of goods against tax invoice of 2000 kg, the supplier on receiving intimation from recipient will issue credit note u/s 34 for short receipt of 50 Kg showing value of Rs 50*100= 500 and tax @ 18% for Rs 90.
The details of credit note issued by the supplier shall be shown in his GSTR-1 and GSTR-3B or GSTR-3 of the same tax period and the same details shall also be shown by the recipient in GSTR-2 and GSTR-3B or GSTR-3 in the same tax period.

(ii) There are two options to treat the returning of damaged goods of 25 kg.
    1. By returning damaged goods to the supplier against Challan/ Debit note issued by recipient against which supplier will have to issue credit note u/s 34 and the same will be recorded in the corresponding tax period
       returns.
    2. By returning goods against tax invoice as supply.