Tax Impact on Goods Sold Prior to GST, but Returned after GST

In a business, return of goods sold is common. Under current regime, the return of goods are allowed to be reduced from the total turnover of sales, provided that the goods are returned within specified time limit.  The eligibility to avail reduction from tax varies from state to state, but it is generally 6 months from the date of sale. GST, a major reform in indirect taxation is expected to be implemented by 1st July, 2017. ‘Supply’ being the taxable event, it is very important for businesses to understand the tax implications on the goods sold prior to GST, but returned on or after the implementation of GST. Also Read Moving to GST: For Registered Businesses Moving to GST: Can […]