You can record sales of exempt goods by selecting the nature of transaction Interstate Sales Exempt .
This nature of transaction is provided for Andhra Pradesh, Assam, Bihar, Chandigarh, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Puducherry, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal.
To record an invoice for exempt sales
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .
2. Enter the Reference no. .
3. Select the party ledger in the field Party's A/c Name .
4. Select the sales ledger grouped under Sales Accounts with Nature of transaction set to Interstate Sales Exempt .
5. Select the stock item. Enter the Quantity and Rate . The sales invoice appears as shown below:
6. Press Enter to save.
The value of this transaction gets captured in the relevant fields of state-specific VAT/CST forms and annexures.
'Interstate Sales Exempt (VAT)' has been shared with