You can record sales returns (both local and interstate) against an earlier sales transaction using a credit note.
Your sales returns will be captured in table 8 (Credit/Debit Notes) in GSTR-1.
To record sales return using a credit note
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 against which 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.