You can record sales returns (both local and interstate) against an earlier sales transaction using a credit note.
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.
You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax break-up.
Similarly, you can record sales returns against an interstate sales transaction by selecting the relevant party, sales ledger, and integrated tax ledger.