Credit Note and Debit Note — Format and Rules
Issue a credit note when an invoice was too high, a debit note when it was too low — both tied to the original invoice. Make either online or download the Excel format.
From (supplier)
To (recipient)
Items
Your business name
Your address
CREDIT NOTE
No: —
Date: —
To
—
| # | Description | HSN | Qty | Unit | Rate | Amount |
|---|---|---|---|---|---|---|
| 1 | — | 1 | Nos | 0.00 | 0.00 |
- Taxable value
- ₹0.00
- CGST @ 9%
- ₹0.00
- SGST @ 9%
- ₹0.00
- Total
- ₹0.00
Issued against the original invoice above; it reduces the taxable value and tax of that invoice.
Credit note format in Excel
- Original invoice no. and date
- Reason for the note
- Item rows with GST formulas
Debit note format in Excel
- Original invoice no. and date
- Reason for the note
- Item rows with GST formulas
Under GST, an invoice is corrected with a note, not by editing it. A supplier issues a credit note when the taxable value or tax charged was more than it should be — goods returned, a discount, a rate error — and a debit note when it was less.
Credit note vs debit note
A credit note reduces the supplier's output tax and the recipient's input tax credit. A debit note increases them. Both must state the original invoice number and date, and are reported in the supplier's GSTR-1 for the month they are issued.
Time limit
A credit note can be declared up to 30 November following the end of the financial year of the original supply, or the date of filing the annual return, whichever is earlier.
Questions people ask.
What is a credit note?
A document a supplier issues to reduce the value or tax of an earlier invoice — for goods returned, a discount or an over-charge.
What is a debit note?
A document a supplier issues to increase the value or tax of an earlier invoice — for short-billing or a price revision. Buyers also call the note they send for a return or shortage a debit note.
What is the difference between a credit note and a debit note?
A credit note lowers the amount payable on the original invoice; a debit note raises it.
Is a credit note mandatory under GST?
To reduce the tax on an invoice already issued, yes — the invoice is not edited; a credit note referring to it is issued and reported in GSTR-1.
What details must a GST credit note have?
Supplier and recipient details with GSTIN, note number and date, original invoice number and date, the value and tax being reduced, and the signature.
Other free tools
Doing this for every item, every day?
A calculator is the right tool once. When it is every item in the store, it belongs in the system that already knows the numbers.