Recording Sales Returns under GST in TallyPrime: 2 Simple Ways

There are two primary methods for recording sales returns under GST in TallyPrime:

1. Using Credit Notes:

This is the common method for B2B transactions and intra-state B2C returns within the same GST return period.

1. Create a Credit Note:

• Go to Gateway of Tally > Accounting Vouchers > F10: Other Vouchers.
• Select “Credit Note” as the voucher type.
• Enter the original invoice details (date, reference number) in the “Ref. Invoice” section.
• Select the customer’s ledger account.
• Add the returned items with negative quantities and amounts (excluding taxes).

2. Set Tax Details:

• Access tax details by pressing Enter.
• Enable Enable Tax Details.
• Choose the appropriate Nature of Transaction based on the original sale (Goods, Services, etc.).
• Set Taxability to match the original invoice (SGST, CGST, IGST, Nil Rated).
• Calculate tax amounts automatically.

3. Save and Print:

• Save the credit note using Ctrl+A.
• You can print the credit note for documentation purposes by accessing the voucher register.

2. Using Debit Notes (Reverse Sales):

This method applies to interstate B2C returns outside the same GST return period or specific state requirements.

1. Create a Debit Note:

• Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
• Select “Sales” voucher type.
• Choose the same “Party A/c Name” as the original B2C customer.
• Add the returned items with positive quantities and amounts (excluding taxes).

2. Set Tax Details:

• Access tax details by pressing Enter.
• Enable Enable Tax Details.
• Choose the appropriate Nature of Transaction based on the original sale (Goods, Services, etc.).
• Set Taxability to “Nil Rated” if applicable (consult an accountant for specific cases).

3. Mark Debit Note as “Reverse Sales”:

• In the Sales voucher, press F12: Configure.
• Mark the option “Reverse Sales”.

4. Save and Print:

• Save the debit note using Ctrl+A.
• You can print the debit note for documentation purposes.

Additional notes while Recording Sales Returns under GST in TallyPrime:

• Maintain proper documentation of original invoices, credit/debit notes, and supporting documents.
• Regularly reconcile your GST returns with TallyPrime data for accuracy.

Important Tips:

• Consult a qualified accountant for specific guidance on recording sales returns, taxability, and compliance requirements based on your location and business scenario.
• Understand the difference between credit and debit notes and their applicability in different situations.
• Consider setting up separate sales ledgers for sales returns for easier identification and reporting.

By following these steps and seeking professional advice, you can effectively record sales returns under GST in TallyPrime, ensuring accurate tax treatment and compliance with regulations.

Remember, proper record-keeping and adhering to regulations are crucial for GST compliance.