Credit Note & Debit Note Generator

Section 34(1) of the CGST Act allows a credit note when the taxable value or tax on the invoice was more than what was payable, when the buyer returns goods, or when goods or services are found deficient. One credit note can cover several invoices of the same financial year.

Under section 34(2), declare it in the return for the month you issue it, but not later than 30 November after the end of the financial year of the supply, or the date you file the annual return for that year, whichever is earlier. The 30 November date applies from 1 October 2022 (Finance Act, 2022).

Rule 53(1A) of the CGST Rules lists them: your name, address and GSTIN; the nature of the document; a serial number of up to 16 characters, unique for the financial year; the date; the buyer’s name, address and GSTIN (or, for an unregistered buyer, the delivery address and State name and code); the original invoice number and date; the taxable value, rate and tax credited or debited; and your signature.

Section 34(3) asks for a debit note when the taxable value or tax on the invoice was less than what was payable, for example a price increase or GST charged at a lower rate by mistake. Section 34(4) asks you to declare it in the return for the month you issue it. A debit note includes a supplementary invoice.

From 1 October 2025, the proviso to section 34(2) says you cannot reduce your output tax for a credit note if a registered buyer claimed input tax credit on it and has not reversed it. For other buyers, the condition is that the tax has not been passed on to anyone else.

Under CBIC Circular 92/11/2019-GST you can issue a financial (commercial) credit note for a discount, but it does not reduce your GST unless section 15(3)(b) is met. A Finance Act, 2026 change that adds such discounts to section 34(1) is shown by CBIC as not yet in force, so check with your CA.