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Returns processed against the original receipt
Returns entered without a receipt reference
Whether GST is recalculated or copied on a POS return depends on how the return is created. The India localization distinguishes between a return that is created by retrieving the original sale receipt, and a return line that is entered manually without a receipt reference.
Returns processed against the original receipt
When the cashier selects an existing receipt to create the return (the transaction has Sale Is Return Sale set to Yes and Retrieved from Receipt No. filled in), the Tax Engine does not run again for the return. Instead, the GST attributes and amounts that were calculated on the original sale are copied onto the return:
- At the transaction header level, Nature of Supply, GST Customer Type, Location GST Reg. No., State, Location State Code, Customer GST Reg. No., PAN Number, and the TCS classification fields (TCS Nature of Collection, T.C.A.N. No.) are copied from the original transaction.
- At the line level, the GST Group Code, GST Group Type, HSN/SAC Code, Exempted, Restaurant Sale, and price-inclusive-of-tax settings are copied from the matching line of the original sale.
Because the return can be for fewer units than were originally sold (a partial-quantity return), the GST amount and each individual tax component amount are apportioned to the returned quantity rather than copied outright:
Component amount on return = original component amount ÷ original quantity × returned quantity
The apportioned amount is then reversed so that it posts as a credit against the original sale.
Note: Because the GST values are copied and apportioned rather than recalculated, a return against a specific receipt always reflects the tax that was actually charged on the original sale, even if item prices or GST rates have since changed.
Returns entered without a receipt reference
When a return line is entered directly at the POS without retrieving the original receipt (Sale Is Return Sale is Yes but Retrieved from Receipt No. is blank), the Tax Engine calculates GST for the line in the normal way, using the customer's current GST Customer Type and Nature of Supply and the item's current tax setup. Once the Tax Engine has calculated the component amounts, the system reverses (negates) them so that they post as a credit rather than a charge.
Note: Because GST is recalculated for this type of return, the return reflects the item's current tax setup. If the item's GST Group Code or rate has changed since the original sale, the return can show a different GST amount than the original sale did.