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 may require to return the goods or issue credit note due to various reasons like damaged goods, quality issues etc.
Process of sale return from registered or unregistered customer has been explained in this document.
Create a sales return order or credit memo
- Choose the
icon, enter Sales Return Order or Sales Credit Memo, and then choose the related link. - Select Customer on Sales Return Order or Sales Credit Memo header, GST customer type should be Registered or Unregistered.
- 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