Yes, Explanation to Section 44 of MGL has such a provision. It provides that where goods received as an inward supply is returned by the recipient to the supplier within six months from the date of the relevant invoice, the tax payable on such supplies shall be equal to the input tax credit availed earlier on such inward supply. This provision essentially ensures that if the recipient returns the goods to the supplier within six months of the date of its original supply, his tax liability on such returned goods will be the same as was at the time of the original supply. If goods are returned after six months of the date of the original supply invoice, the rate of tax applicable will be the rate prevailing on date of such return.
Articles in this section
- Who is the person responsible to make assessment of taxes payable under the Act?
- Is there any provision in MGL for tax treatment of goods returned by the recipient?
- Example of tax payable on return of inward supply
- When can a taxable person pay tax on a provisional basis?
- What is the latest time by which final assessment is required to be made?
- Where the tax liability as per the final assessment is higher than in provisional assessment, will the taxable person be liable to pay interest?
- What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed under section 45 of MGL?
- Whether Proper Officer is required to give any notice to taxable person before completing assessment u/s 46?
- If a taxable person fails to file the return required under law (under section 27 or 31), what legal recourse is available to the tax officer?
- Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?