Compliance
Debit Note and Credit Note Under GST: Complete Guide (2026)
Issued an invoice with the wrong amount or rate? Here's how credit notes and debit notes work under GST to correct it without violating compliance.
12 Feb 20268 min read
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Free GST Credit Note Generator
Issue a GST-compliant credit note in seconds when a buyer returns goods, you give a post-sale discount, or you overcharged on the original invoice.
- CBIC Rule 46 compliant
- PDF made in your browser
- No credit card
Overview
What is a Credit Note under GST?
A credit note is issued by a supplier to a buyer when the taxable value or tax charged on the original tax invoice was higher than what was actually payable. This happens in three common situations: goods are returned, a post-sale discount is given, or the supply turned out to be deficient.
Under Section 34 of the CGST Act, a credit note must reference the original tax invoice and reduces the supplier's output GST liability — but only if the buyer has reversed the corresponding ITC. It is reported in Table 9B of GSTR-1 (registered) or Table 9B/9C (unregistered).
The deadline to issue a credit note is the earlier of: 30th November of the year following the financial year of the original invoice, or the date of filing the annual return.
When to issue a Credit Note
- Goods are returned by the buyer (sales return).
- You agreed a post-sale discount that was not on the original invoice.
- Services were deficient and you are giving a partial refund.
- The original invoice over-charged GST (wrong rate, wrong taxable value).
- The supply was cancelled after invoicing.
Fields
Mandatory fields on a Credit Note
- "CREDIT NOTE" heading
- Mandatory document title.
- Credit note number & date
- Unique sequential, separate series (CN-) recommended.
- Original invoice reference
- Number and date of the tax invoice being adjusted — mandatory.
- Reason for issue
- Sales return, post-sale discount, deficient supply, etc.
- Place of supply
- Same as the original invoice — determines CGST+SGST vs IGST reversal.
- Taxable value reduction & GST reversed
- Per-line reduction with rate, CGST, SGST/UTGST, IGST shown separately.
How it works
Generate in 3 simple steps
- 1
Fill in details
Reference the original invoice number and date, pick a reason code, and enter the values being credited.
- 2
Preview live
CGST/SGST/IGST reversal mirrors the original invoice automatically.
- 3
Download PDF
Send the PDF to the buyer and report it in Table 9B of your next GSTR-1.
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FAQ
Frequently asked questions
Everything you need to know about credit note generation.
When can I issue a credit note?
Up to 30th November of the year following the financial year of the original invoice, or the date of filing your annual return — whichever is earlier. Beyond that, you cannot reduce GST liability via a credit note.
Do I need to link a credit note to an invoice?
Yes. The original invoice number and date are mandatory on every credit note. Without the reference, the credit note is invalid.
Where do I report a credit note in GSTR-1?
Table 9B for credit notes issued to registered buyers; Table 9B / 9C for unregistered buyers (and amendments). Our PDF labels the type so your accountant can pick the right table.
Will my output GST automatically reduce?
Your output liability reduces only if the buyer has reversed the corresponding ITC. If they haven't, you cannot claim the reduction.
Can I issue a credit note without GST?
Yes — a commercial credit note (no GST adjustment) can be issued at any time. It just won't reduce your output tax liability. Use this for goodwill discounts after the deadline.
What is the difference between a credit note and a refund voucher?
A credit note adjusts a tax invoice for completed supply. A refund voucher refunds an advance (where you had issued a receipt voucher) and the supply never happened.
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Guides
Read before you issue one
Compliance
GST Invoice Format: 16 Mandatory Fields Under Rule 46 (2026)
The complete GST invoice format under Rule 46 — every mandatory field explained with examples and compliance tips.
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Place of supply is the single most important concept that determines which GST component you charge. Get it wrong and your buyer loses ITC. Here is how it works for goods, services, and exports.
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