Purchases Return Book or Returns Outward Book is a subsidiary book maintained to record the goods or materials returned to the sellers of goods that were purchased on credit. Neither the return of goods purchased on cash nor the returns of any asset other than merchandise are recorded in this book. This book is maintained if the return of goods is frequent otherwise it can be recorded in the Journal. Goods may be returned because of any of the following reasons:
1. Goods are not as per sample.
2. Goods are defective.
3. Goods are not as per order.
4. Goods have been delivered late and the customer has refused to accept them.

In all these cases, the purchaser prepares a 'Debit Note' and sends it to the supplier. Debit Note is a document notifying the person that a debit has been made to his account. The reason for the debit is also stated in the Debit Note. A Debit Note is prepared when the goods are returned and on its basis an entry is recorded in the Purchases Return Book. GST (IGST or CGST and SGST) was paid at the time of purchase of goods. Thus, in the Purchases Return Book or Returns Outward Book, Input IGST or Input CGST and Input SGST are also reversed.

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