Credit Note Format under GST (+ Debit Note): Templates

Last updated: 22 October 2026

Short answer: a credit note reduces the value or tax of an invoice you have already issued, for example when goods come back. A debit note increases it. Both are issued by the supplier under section 34 of the CGST Act, must quote the original invoice, and are reported in GSTR-1. For invoices of FY 2025-26, the last date to issue a credit note is 30 November 2026, or the date you file your annual return if that is earlier.

Download the credit note and debit note formats

• Credit note: Word · Excel · PDF
• Debit note: Word · Excel · PDF

Each template has every field Rule 53(1A) requires. The Excel versions calculate CGST and SGST, or IGST, and the totals. Supplier details are blank for you to fill in.

What is a credit note under GST?

Section 34(1) lets a supplier issue a credit note when, after a tax invoice:

• the taxable value or tax charged was more than it should have been;
• the buyer returns the goods; or
• the goods or services supplied are found deficient.

One credit note can cover several invoices of the same financial year.

Credit note format: required particulars (Rule 53(1A))

Filled credit note example: goods returned

The original invoice (same-state sale) was for 20 units at ₹2,000. The buyer returns 5. We use 18% GST for illustration.

After the credit note, the net sale is ₹30,000 + ₹2,700 CGST + ₹2,700 SGST = ₹35,400.

Debit note format and when to issue one

A supplier issues a debit note when the taxable value or tax in the invoice was less than it should have been (section 34(3)).

Debit note particulars

The same Rule 53(1A) particulars as a credit note, with “Debit Note” as the nature of document and its own number series (e.g. DN/2026-27/001).

Debit note example: rate undercharged

You billed 1,000 units at ₹50 to a buyer in another state; the agreed rate was ₹55. Extra value = 1,000 × ₹5 = ₹5,000. IGST 18% (illustration) = ₹900. Debit note total = ₹5,900.

Credit note vs debit note

Is a debit note the same as a purchase return? Not under GST. A buyer returning goods may send its own “debit note” for its books, but the GST document is the supplier’s credit note.

Time limit for issuing a credit note

Section 34(2): a credit note must be declared no later than 30 November after the end of the financial year in which the supply was made, or the date of filing the annual return, whichever is earlier.

Example: an invoice dated 15 March 2026 belongs to FY 2025-26. If you file the annual return on 15 November 2026, your deadline is 15 November 2026; otherwise it is 30 November 2026.

There is no such limit for issuing a debit note. But the buyer can claim ITC on it only up to 30 November after the end of the financial year of the debit note, or the annual return date if earlier (section 16(4)).

Reporting in GSTR-1 and the GSTR-3B effect

• Table 9B: credit and debit notes issued to registered buyers (CDNR).
• Table 9C: amendments to notes already reported.

A credit note reduces your output tax in that period’s GSTR-3B; a debit note increases it.

Buyer side: ITC reversal is now a condition

Since 1 Oct 2025, the proviso to section 34(2) says the supplier gets no reduction in output tax if:

1. the buyer is registered and has not reversed the ITC on the credit note, or
2. in other cases, the tax has been passed on to someone else.

In practice: before you reduce your tax, make sure the buyer has reversed the ITC (it shows in their GSTR-2B). In the example above, the buyer must reverse ₹1,800 (₹900 CGST + ₹900 SGST).

Financial credit notes vs GST credit notes

Not every credit note changes GST. A financial (commercial) credit note reduces the amount the buyer owes but not the GST already charged; it is common for discounts given after sale.

For a post-sale discount to reduce the taxable value, section 15(3)(b) currently requires that the discount was agreed before or at the time of supply and linked to specific invoices, and that the buyer reverses the matching ITC. The Finance Act 2026 has replaced this test with a credit-note-and-ITC-reversal rule, but that change has not yet been notified, so the old test still applies today.

E-invoicing: credit and debit notes go to the IRP too

If your aggregate turnover is above ₹5 crore, you must e-invoice, and this covers credit and debit notes (Notification 10/2023-CT). Businesses with turnover of ₹10 crore or more must report documents, including credit and debit notes, within 30 days of their date, as per a GSTN advisory from 1 Apr 2025. See our e-invoicing software guide.

Common mistakes and checklist

• Editing an issued invoice instead of issuing a credit or debit note. See our GST invoice format.
• Missing the original invoice number and date.
• Using the invoice series for credit notes.
• Reducing tax before the buyer has reversed ITC.
• Missing the 30 November deadline.
• Mixing up documents: goods that move without a sale, such as for job work, travel on a delivery challan (Rule 55), not an invoice.

Billing software that creates notes from the invoice saves typing; compare options in our GST billing software guide. Freelancers handling refunds should also read GST for freelancers. For advance-stage documents, see our proforma invoice format.

Credit notes reduce debtors on the balance sheet.

FAQs

Can one credit note cover several invoices?

Yes, for supplies made in the same financial year (section 34(1)).

Who issues a debit note, supplier or buyer?

Under GST, the supplier.

Do credit notes need an e-invoice IRN?

Yes, if you are covered by e-invoicing (aggregate turnover above ₹5 crore).

Sources and further reading

• CGST Act section 34, section 15, section 16(4) (CBIC).
• CGST Rule 53(1A).
• GSTR-1 user guide.
• GSTN advisory on 30-day reporting (advisory, not a notification).
• Checked 22 Oct 2026.