https://help.tallysolutions.com/docs/te9rel65/Tax_India/VAT/vat_sales/interstate_sale_exempt.htm

Interstate Sales Exempt (VAT)

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, Jammu & Kashmir, 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.