Credit Note and Debit Note Under GST: When and How to Issue
Returned goods, price changes or a wrong rate? You cannot edit a filed invoice — you issue a note. Here are the rules.
Credit note
Issued by the supplier when taxable value or tax charged exceeds what was due — sales returns, post-sale discounts, deficiency in service. It reduces your output tax.
Debit note
Issued when the original invoice undercharged value or tax. It increases output tax and can be issued any time.
Time limit for credit notes
Must be declared in returns by 30 November following the financial year of the original invoice.
Contents
Same fields as a tax invoice plus the original invoice number and date, and the words 'Credit Note' or 'Debit Note'.
Reporting
Report in Table 9B of GSTR-1. Keep a separate number series so the audit trail is clear.
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Create a free accountKeywords: credit note gst · debit note gst rules. This article is general information, not professional tax advice.
