Invoices & Sales
Credit & Debit Note Generator
GST credit and debit notes tied to the original invoice, ready to report in GSTR-1.
Credit & Debit Note Generator
www.indianbusinesstools.com
A credit note lowers what the buyer owes (returns, discounts, a price or tax charged too high). A debit note raises it (a price or tax charged too low, or extra charges).
Issued by
A visual signature image only — not a legal e-signature. For GST e-invoicing, check whether the IRN system applies to your turnover.
Issued to
Enter both GSTINs and this is set from their state codes, or choose it yourself.
| Description | HSN/SAC | Qty | Unit price | GST % | Taxable Value | |
|---|---|---|---|---|---|---|
| ₹0.00 |
Taxable Value is each line before GST — GST is worked out per line and added together as CGST + SGST or IGST below, matching the standard tax invoice format.
Preview
Credit Note
Credit note date: —
Issued by
—
Issued to
—
| Description | HSN | Qty | Rate | GST% | Taxable Value |
|---|---|---|---|---|---|
| — | 1 | ₹0.00 | 18% | ₹0.00 |
When to issue a credit note or a debit note
Under Section 34 of the CGST Act, a supplier issues a credit note when the taxable value or the tax on an invoice was too high, when goods come back, or when goods or services turn out to be deficient. A debit note is the opposite: it covers a taxable value or tax that was too low, and extra amounts the buyer owes. Both refer back to the original tax invoice.
What the note must show
- The words "Credit Note" or "Debit Note", a serial number in a running series, and the date.
- Your name, address and GSTIN, and the buyer's name, address and GSTIN if registered.
- The number and date of the original invoice. The tool has a field for each.
- The value, the GST rate and the amount of tax credited or debited, split into CGST and SGST or IGST as on the invoice.
- Your signature.
Reporting it and the time limit
Report the note in your GSTR-1 for the month in which you issue it, not the month of the original invoice. A credit note can reduce your tax liability only if you issue it by 30 November after the end of the financial year, or the date you file the annual return, whichever is earlier, and the buyer has reversed the credit. A debit note has no such cut-off. If you are working out what a late return costs, use the late fee calculator.
A discount given after the sale can be treated as a reduction in value only if it was agreed before the supply and is linked to specific invoices. Otherwise check with your CA before you issue a credit note for it.
Frequently asked questions
What is the difference between a credit note and a debit note under GST?
A credit note lowers what the buyer owes: goods were returned, the price or tax on the invoice was too high, or the supply was deficient. A debit note raises it: the price or tax was too low, or there are extra charges. Both are issued by the supplier and refer to the original invoice.
Who issues a credit note, the buyer or the seller?
Under GST the supplier issues both credit notes and debit notes. A buyer returning goods sends them back with a delivery challan, and the supplier then issues the credit note. A buyer who wants to charge a supplier issues a separate document, which is not a GST credit or debit note.
Which month do I report a credit note in?
In your GSTR-1 for the month in which the credit note is issued, with the original invoice number and date. Your tax liability falls only if the credit note meets the Section 34 conditions, including the 30 November time limit and the buyer reversing the input credit.
Can I issue a credit note to a customer who isn't registered for GST?
Yes. The supplier adjusts the tax on its own side. There is no input credit for the buyer to reverse, so the condition on the buyer doesn't apply. The note still needs the original invoice details and the place of supply.