You can record sales returns or de-escalation of the sale value (both local and interstate) against an earlier sales transaction using a credit note. You can use the voucher mode of debit note to record the escalation of sale value.
Your sales returns will be captured in table 8 ( Credit/Debit Notes ) in GSTR-1 .
On this page
● Sales returns using credit note
● Discount allowed after supply of goods
1. Go to Gateway of Tally > Accounting Vouchers > Ctrl+F8 .
2. In Original invoice no. , enter the invoice number of the original sales transaction against which you are recording the current sales return.
3. In Party’s A/c Name , select the party from whom the original sales was made.
4. Select the central tax and state tax ledgers.
5. Provide GST details: Enable this option if you want to enter additional details about the purchase return.
o 01-Sales Return - When there is a return of goods or services after sales.
o 02-Post sale discount - When discount is allowed on goods or services after sales.
o 03-Deficiency in service - When there is a deficiency in services (like a quality issue) after sales.
o 04-Correction in invoice - When there is a change in the invoice raised that leads to change in tax amount.
o 05-Change in POS - When there is a change in place of supply that leads to change in tax amount.
o 06-Finalization of Provisional assessment - When there is a change in price or rate after the department issues a notification about the finalized price of the goods or services.
o 07-Others - Any other nature of return.
Similarly, you can record sales returns against an interstate sales transaction by selecting the relevant party, sales ledger, and integrated tax ledger.
Under GST invoicing rules, issuing of supplementary invoice has not been defined. You can record the adjustment to sales using credit/debit note.
While printing the credit note, the invoice title will now appear based on the Taxability of the stock items or ledgers as:
● Tax Invoice for taxable transactions and exports.
● Bill of Supply for exempt or nil rated transactions.
● Invoice-cum-Bill of Supply for exempt/nil rated with taxable transactions.
Discount given after supply (post sales discount) will not form part of the transaction value, when:
● Discount is established in terms of the agreement entered at or before the time of supply.
● Discount is linked to the relevant Invoices.
● Value of input tax credit to such discounts has been reversed by the buyer (buyer has reversed the credit on discount related to such invoices).
There will be no reduction in transaction value to the supplier, and GST amount should not be mentioned in the credit notes related to such discount.
1. If the above conditions are not fulfilled, a journal voucher can be recorded by:
● Debiting or crediting the Discount ledger (discount received or paid).
● Crediting or debiting the party ledger (adjusting the invoice bill reference to have implication on the outstanding amount). This entry implication will have only in books of accounts and not in any GST reports.
2. If the above conditions are fulfilled, record a credit note for discount in voucher mode as given below:
● Debit: Discount on Sales (Sales Account) - xxx
● Debit: CGST - xxx
● Debit: SGST - xxx
● Credit: Party Account - xxx