Goods returned or price revision after appointed date Under GST

Under GST, there are provisions for the return of goods or revision of prices after the appointed date. In this article, we will discuss the provisions related to goods returned or price revision under GST.

What is the appointed date under GST?

The appointed date under GST is the date on which the GST Act comes into effect. For most states, the appointed date was 1st July 2017. However, for some states like Jammu and Kashmir, the appointed date was 8th July 2017.

Goods returned after the appointed date

Under GST, if any goods are returned after the appointed date, the registered person who supplied such goods shall be eligible for the refund of the tax paid on such goods. However, certain conditions need to be fulfilled for the same.

The conditions are as follows:

The goods should have been returned within a period of 6 months from the appointed date.
The goods should not have been sold after the appointed date.
The recipient of the goods should have refunded the consideration received for such goods.
The recipient of the goods should not have availed input tax credit on such goods.

If all the above conditions are fulfilled, the supplier of the goods shall be eligible for the refund of the tax paid on such goods.

Price revision after the appointed date

Under GST, if the price of any goods is revised after the appointed date, the registered person who supplied such goods shall be eligible for the refund of the tax paid on such goods. However, certain conditions need to be fulfilled for the same.

The conditions are as follows:

The price revision should be made within a period of 6 months from the appointed date.
The price revision should have been made on account of a reduction in the rate of tax or in the amount of tax payable.
The recipient of the goods should not have availed input tax credit on such goods.

If all the above conditions are fulfilled, the supplier of the goods shall be eligible for the refund of the tax paid on such goods.

Conclusion

Under GST, there are provisions for the return of goods or revision of prices after the appointed date. However, certain conditions need to be fulfilled for the supplier of the goods to be eligible for the refund of the tax paid on such goods. It is important for business owners and startup founders to be aware of these provisions to avoid any confusion or penalties.