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Billing & GST

What is Credit Note?

GST Credit Note · क्रेडिट नोट

A Section 34 document reducing a previously issued tax invoice after returns, discounts, or corrections.

Once a tax invoice exists, you cannot simply edit it. Sales returns, post-supply discounts, rate corrections, or cancelled orders require a credit note referencing the original invoice number and date, stating the reduced taxable value and tax.

Both parties then adjust their returns — your GSTR-1 shows lower output tax while the buyer trims input credit. The issue deadline is 30 November following the financial year of the supply or the annual-return date, whichever is earlier.

Credit Note: quick answers

Credit note vs debit note direction?

Credit note reduces what the buyer owes you; a debit note (issued by the buyer-side context or supplier for increases) documents more tax being payable.

Can I issue one months after the sale?

Yes, within the statutory window — the reference fields keep it tied to the original invoice.

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