Sales Returns & Adjustments in Value of Goods under GST

Section 34(1) of CGST Act, 2017 - when tax charged in tax invoice is higher or value charged higher in invoice or where the goods supplied are returned by the recipient, or where goods supplied are found to be deficient, the registered person, who has supplied such goods, may issue to the recipient a credit note

Section 34(2) Credit note can be adjusted before September 30^th of the completion financial year against tax liability.  Meaning if sales return happens on 1.10.17 & 31.03.18 credit note to be issued and adjusted before 30.09.2018 for both the cases, provided customer reverses the GST credit for the material and there is proof of the same.

Section 34(3) when tax charged in tax invoice is lower or value charged lower in invoice, the registered person, who has supplied such goods, may issue to the recipient a debit note

Section 34(3) Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note or supplementary invoice containing such particulars as may be prescribed.

Section 34(4) Any registered person who issues a debit note shall declare the details of such debit note in the return for the month during which such debit note has been issued and the tax liability shall be adjusted in such manner as may be prescribed.