Returned Goods

Key Requirements

For a free replacement with similar goods, the supplier may keep the original tax invoice or cancel it by credit note and issue a new one. If replacement goods are cheaper, issue a credit note for the difference and corresponding GST. If more expensive, an additional tax invoice covers the difference and must refer to the original invoice. A refund of the sale price and GST for returned defective goods should be documented by a credit note referring to that original invoice. Keep the returned-goods record and link the replacement or refund to the relevant sale so that the adjustment is not mistaken for a second independent supply or duplicated tax reversal. Apply the normal invoicing information requirements to each document.