Question21:

We are in FMCG business. The goods is being returned as damage and expiry by our Super Stockiest to our depot. The goods were supplied by Depot as stock transfer in the pre-GST regime. Please adivise as to what documents has to be made by the Super Stockist for transfering the materials to us & also can we take ITC on the goods sent back in case GST is involved.

Answer

Any movement of goods between distinct person is subjected to GST irrespective of the fact whether it is relating to pre GST regime.

For sending of material from super stockiest to you, GST will be charged and goods will be cleared under cover of invoice plus E Way Bill (if applicable).

You can claim ITC of the same. Please note that the accounting entries in books of accounts will not include purchase and sale. This invoice will be issued for GST purpose only. (Reply dt. 18/4/2018)