Sales return of goods from registered or unregistered customer

Sales to a registered customer are known as B2B sales, sales to an unregistered customer are known as B2C sales. There's no difference in computation of tax for a B2B and B2C sales. However, they're required to be reported in separately in GSTR-1.

A customer might return goods or need a credit note because of damage or quality issues.

Process of sale return from registered or unregistered customer has been explained in this document.

Create a sales return order or credit memo

  1. [!INCLUDE [open-search](../../includes/open-search.md)] Enter Sales Return Orders or Sales Credit Memos, and then choose the related link.
  2. Select Customer on Sales Return Order or Sales Credit Memo header, GST customer type should be Registered or Unregistered.
  3. Select Item Code for goods or G/L Account for Service Sale on Sales Return Order or Sales Credit Memo line. GST Group Code, HSN/SAC Code shouldn't be blank on Item or G/L Account.

For example, there's a sales credit memo for INR 10,000 and 18% GST (that is, 9% CGST and 9% SGST/UTGST in case of Intra-State or Intra-Union Territory transaction or 18% IGST in case of Inter-State transaction) has to be charged on the credit memo amount.

  • GST calculation appears in the Fact Box as following:

    Component Amount
    GST Base Amount 10,000
    CGST 900
    SGST 900

  • GL Entries for Intra-State Sales Return of Goods from Registered or Unregistered Customer are as following:

    Particulars Amount
    Sales Account 10,000
    SGST/UTGST Payable Account 900
    CGST Payable Account 900
    Customer Account -11800

  • GL Entries for Inter-State Sales Return of Goods from Registered or Unregistered Customer are as following:

    Particulars Amount
    Sales Account 10,000
    IGST Payable Account 1800
    Customer Account - 11800

  • GL Entries for Intra-State Sales Return of Services from Registered or Unregistered Customer are as following:

    Particulars Amount
    Service Account 10,000
    SGST/UTGST Payable Account 900
    CGST Payable Account 900
    Customer Account -11800

  • GL Entries for Inter-State Sales Return of Services from Registered or Unregistered Customer are as following:

    Particulars Amount
    Services Account 10,000
    IGST Payable Account 1800
    Customer Account - 11800

Sale Return from Registered Customer with Overseas POS

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