{"id":65,"date":"2017-03-28T10:12:21","date_gmt":"2017-03-28T04:42:21","guid":{"rendered":"http:\/\/www.gsthelplineindia.com\/blog\/?p=65"},"modified":"2018-03-30T08:59:51","modified_gmt":"2018-03-30T08:59:51","slug":"tax-applicable-sales-goods-pre-gst-file-return-post-gst","status":"publish","type":"post","link":"https:\/\/www.gsthelplineindia.com\/blog\/2017\/03\/28\/tax-applicable-sales-goods-pre-gst-file-return-post-gst\/","title":{"rendered":"TAX APPLICABLE ON SALES OF GOODS PRE GST AND FILE RETURN POST GST"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In the old taxation scenario, the goods are eligible to be reduced from the overall turnover of sales, on the condition that the goods are returned within the mentioned timeline. The rebate in tax and its eligibility varies from one state to other. It takes 6 months from the actual date of sale. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><strong>GST (<em>Goods and Services Tax<\/em>)<\/strong> is a major taxation reform that has been implemented from July 1, 2017. As the Supply is a taxable event, therefore, it is necessary for businesses to understand the applicability of tax on goods and services in GST regime.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><strong>Read More:<\/strong> <a href=\"https:\/\/www.gsthelplineindia.com\/blog\/2017\/03\/22\/simple-ways-determine-supply-goods-services-gst\/\" target=\"_blank\" rel=\"noopener\">Determine the Supply of Goods and Supply of Services in GST<\/a><\/p>\n<p><strong>We have divided the topic into two parts:<\/strong><\/p>\n<h2>1.Return of taxable goods<\/h2>\n<table>\n<tbody>\n<tr style=\"background-color: gray;\">\n<th width=\"15%\"><strong>SCENARIO<\/strong><\/th>\n<th width=\"35%\"><strong>EXPLANATION<\/strong><\/th>\n<th width=\"25%\"><strong>EXAMPLE<\/strong><\/th>\n<th width=\"25%\"><strong>TAXABILITY<\/strong><\/th>\n<\/tr>\n<tr>\n<td width=\"15%\"><span style=\"font-weight: 400;\">Returned by Registered Assessee<\/span><\/td>\n<td style=\"text-align: justify;\" width=\"35%\">The return initiated by \u00a0a registered assessee will be taken as supply, \u00a0and the GST will be applicable. \u00a0On the purchase date of the goods, the tax paid by the recipient is termed as input tax credit and it will be eventually allowed to be carried forward as input tax credit to GST. \u00a0Under GST, the person returning the good must charge GST and the GSt paid on the sales returns will be allowed as input tax credit to the seller.<\/td>\n<td style=\"text-align: justify;\" width=\"25%\">Ram Automobiles is a registered dealer in spare parts, located in Mumbai. On 16th June, 2017, Ram Automobiles sold 35 Nos of spare parts worth Rs. 1, 00,000, with VAT @ 14.5%, to Rakesh Auto Parts, who is also a registered dealer in Mumbai On 6th July, 2017, Rakesh Auto Parts returned 20 Nos of the spare parts to Ram Automobiles.<\/td>\n<td style=\"text-align: justify;\" width=\"25%\">The return of goods by Rakesh Auto Parts will be considered as supply, and will attract GST. Hence, on making the purchase return, Rakesh Auto Parts will charge a GST of 18 %.<\/td>\n<\/tr>\n<tr>\n<td width=\"15%\">Returned by an Unregistered Assessee<\/td>\n<td style=\"text-align: justify;\" width=\"35%\"><span style=\"font-weight: 400;\">In case the person is unregistered then the seller will be eligible for the refund of the tax paid in the current tax regime. The refund to be claimed will be based on the following conditions mentioned below:<\/span><\/p>\n<p><span style=\"font-weight: 400; text-align: justify;\">1. The date of sale of the goods returned should not be more than 6 months prior to the date of implementation of GST.<\/span><\/p>\n<p><span style=\"font-weight: 400; text-align: justify;\">2. The return of goods should be within a period of 6 months from the date of implementation of GST.<\/span><\/td>\n<td style=\"text-align: justify;\" width=\"25%\">Ram Automobiles is a registered dealer in spare parts located in Mumbai. On 26th June, 2017, Ram Automobiles sold a spare part worth Rs. 20,000, with VAT @ 14.5%, to a customer Mr. Sharma.<\/p>\n<p>On 3nd July, 2017, Mr. Sharma returned the spare part to Ram Automobiles.<\/td>\n<td style=\"text-align: justify;\" width=\"25%\">Ram Automobiles will be eligible for a refund of Rs. 1,450. This is because, the sale period is within 6 months prior to the implementation of GST, and the return of the spare part is within 6 months from the date of implementation of GST.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>2.Return of exempted goods:<\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In case \u00a0the exempted goods are sold prior to <strong>GST<\/strong>, but these goods are taxable and are returned on or after the GST Roll-out.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<table class=\"table-blue\" width=\"100%\">\n<tbody>\n<tr style=\"background-color: gray;\">\n<th width=\"15%\"><strong>SCENARIO<\/strong><\/th>\n<th width=\"35%\"><strong>EXPLANATION<\/strong><\/th>\n<th width=\"25%\"><strong>EXAMPLE<\/strong><\/th>\n<th width=\"25%\"><strong>TAXABILITY<\/strong><\/th>\n<\/tr>\n<tr>\n<td width=\"15%\"><span style=\"font-weight: 400;\">Returned by Registered Taxable Person<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/td>\n<td style=\"text-align: justify;\" width=\"35%\"><span style=\"font-weight: 400;\">On exempted goods, which are sold under the present taxation scheme and are returned after \u00a0the GST implementation, no tax will be liable. This is applicable under following conditions:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">1. The date of sale of the goods returned should exceed period of 6 months prior to the date of \u00a0GST rollout.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2. The return of goods should be done within a period of 6 months from the date of GST implementation.<\/span><\/td>\n<td style=\"text-align: justify;\" width=\"25%\">1. On 16th June, 2017, Ram Automobiles sold a goods worth Rs. 1,00,000, which is exempt from VAT.On 20th July, 2017, goods were returned to Ram Automobiles<\/p>\n<p>2. On 16th June, 2017, Ram Automobiles sold goods worth Rs. 1,00,000, which is exempt from VAT.On 22th January, 2018, spare part were returned to Ram Automobiles.<\/p>\n<p>&nbsp;<\/td>\n<td style=\"text-align: justify;\" width=\"25%\">1. On return of goods, no tax is payable. This is because, the sale period is within 6 months prior to the implementation of GST, and the return of goods is within 6 months from the date of implementation of GST.<\/p>\n<p>2. On return of goods, tax is payable. This is because, the return of goods is not within 6 months from the date of implementation of GST.<\/td>\n<\/tr>\n<tr>\n<td width=\"15%\"><span style=\"font-weight: 400;\">Taxable goods are returned by an Unregistered Person<\/span><\/td>\n<td style=\"text-align: justify;\" width=\"35%\"><span style=\"font-weight: 400;\">The sold out Goods which are treated as exempt under current regime and are returned by unregistered person in GST, no tax is \u00a0on such return.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/td>\n<td style=\"text-align: justify;\" width=\"25%\">On 26th June, 2017, Ram Automobiles sold a goods worth Rs. 20,000, to a customer Mr. Sharma. This was exempt from VAT.<\/p>\n<p>On 2nd July, 2017, Mr. Sharma returned goods to Ram Automobiles.<\/td>\n<td style=\"text-align: justify;\" width=\"25%\">No tax is payable on such returns.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For more information on <strong>GST India<\/strong>, please <a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.gsthelpline&amp;hl=en\" target=\"_blank\" rel=\"noopener\">Download our GST Helpline mobile application<\/a> that is supports\u00a0both iOS and android platforms. The <a href=\"https:\/\/www.gsthelplineindia.com\/\" target=\"_blank\" rel=\"noopener\">GST Helpline<\/a> is the best way to acquire knowledge about GST. The light user interface allow the users to work with the app seamlessly and enjoy all the services in both online as well as offline mode. The users automatically gets notifies about the new articles and GST draft law on regular basis. \u00a0<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p style=\"text-align: justify;\">Related : <a href=\"https:\/\/itunes.apple.com\/us\/app\/gst-help-line\/id1151364557\" target=\"_blank\" rel=\"noopener\" class=\"broken_link\">Download GST Helpline Application for Ios<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the old taxation scenario, the goods are eligible to be reduced from the overall turnover of sales, on the condition that the goods are returned within the mentioned timeline. The rebate in tax and its eligibility varies from one state to other. It takes 6 months from the actual date of sale. GST (Goods &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.gsthelplineindia.com\/blog\/2017\/03\/28\/tax-applicable-sales-goods-pre-gst-file-return-post-gst\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;TAX APPLICABLE ON SALES OF GOODS PRE GST AND FILE RETURN POST GST&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":1527,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[18,19,20,21],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>TAX APPLICABLE ON SALES OF GOODS PRE GST AND FILE RETURN POST GST - GST Helpline India Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.gsthelplineindia.com\/blog\/2017\/03\/28\/tax-applicable-sales-goods-pre-gst-file-return-post-gst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TAX APPLICABLE ON SALES OF GOODS PRE GST AND FILE RETURN POST GST - GST Helpline India Blog\" \/>\n<meta property=\"og:description\" content=\"In the old taxation scenario, the goods are eligible to be reduced from the overall turnover of sales, on the condition that the goods are returned within the mentioned timeline. The rebate in tax and its eligibility varies from one state to other. It takes 6 months from the actual date of sale. 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