TaxTMI 
TaxTMI 
The sales return to Interstate is more than sales amount to that particular state.
Interstate sales return is more than sales
15 Jul 2020 
7 Replies 
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Credit note reporting: enter interstate sales returns in GSTR-1; adjust GSTR-3B liability without entering negative outward supplies.
Record the credit note in GSTR-1 using the credit note or B2C section (permitting negative entry where allowed). GSTR-3B will not accept negative outward-supply figures; therefore reduce current-period tax liability to the extent possible and, if the portal prevents negative entries, carry the adjustment into subsequent GSTR-3B periods, ensuring taxable value and tax are adjusted consistently. (AI Summary)
Record the credit note in GSTR-1 using the credit note or B2C section (permitting negative entry where allowed). GSTR-3B will not accept negative outward-supply figures; therefore reduce current-period tax liability to the extent possible and, if the portal prevents negative entries, carry the adjustment into subsequent GSTR-3B periods, ensuring taxable value and tax are adjusted consistently. (AI Summary)