Dear All, I am a garments manufacturer and sale through offline channel.. Recently we started to list our products in B2C marketplaces like flipkart,amazon,etc... and B2B platforms like UDAAN, WHOLESABOX,etc. Everyday we raise invoices for all the orders we receive and send through these marketplaces logistics, In these platforms, about 95% of invoicing done to unregistered customers, Everyday we use to get returns upto 30% due to following reasons (i) party not accepting the parcel, delivery rejected by logistics (ii) party not satisfied with the quality and request for return through marketplaces, (they dont issue debit note for them) Currently, how i account these returns in gst are, deleting the invoices if the invoice date and return are falls in same month and raise sales returns if return happens in the next month. Can I do like this as sequential invoice nos are missing, or we can do it in any other means? My accountant suggests to make sales orders first and once the goods delivered to the party for the sales orders, we convert the SO to Invoice, but in this case, sale happened in one date and sales accounting happened in another date. Please guide me on this.
Hii
yes you can do this practice which is called sales on approval basis.
but in this approach if customers are little bit aware about sales on approval method then your return/replacement may increase.
thus in your old practice, ignore deleting your invoices and issue debit/credit notes as required, because we have to show sales through e commerce portal and e commerce portal also have to show sales from us(various dealers).
Hello,
Rather than deleting the invoices for returned goods, issue debit/credit notes as required.
You can use the Sales on Approval method, but it won't work in case the goods are returned after some time of accepting the delivery.
Raising the sales return would be the appropriate method, as it could also be reflected in the GST returns easily for sales to both registered or unregistered buyers.
I hope that this answer satisfies your requirements. For further understanding, you can contact us directly at or take a phone consultation.
Regards,
CA Hunny Badlani
So, Undelivered returns also to be considered as sales returns and it all should be mentioned in GSTR1- 9B credit note (Registered) and GSTR1 - 9B Credit note (Unregistered)?
You should maintain B2c invoices in a separate invoice series and while filing GSTR 1 and 3B it just asks state wise sale and it just matches net figure and mentioning invoice series is not mandatory. Thus it is advisable to just match the month end sale of each state as a practical approach.
Theoretically you must issue sale invoice and sale return invoice for each order.
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Thank you.
Hi,
Yes, you can use the Sales on Approval method.
However, there is no need for deleting the invoices. You can issue debit/credit note for the same.
No, it would not be considered as sales return.