Credit Note Generator.

Section 34(1) of the CGST Act provides for a credit note when a tax invoice has been issued and the taxable value or tax charged in it exceeds the taxable value or tax payable, when the goods are returned by the recipient, or when the goods or services are found to be deficient. In practice that covers sales returns, post-sale discounts that were agreed in the original terms, short supply, damaged goods, rate differences, and tax charged at a wrong higher rate. The credit note must refer to the original invoice and be issued by the supplier, not the recipient; a debit note raised by the buyer for a return is a commercial document and does not by itself reduce the supplier GST liability.

Rule 53 of the CGST Rules requires: name, address and GSTIN of the supplier; the nature of the document, that is, the words credit note; a consecutive serial number of up to 16 characters, unique for a financial year; the date of issue; name, address and GSTIN or unique ID of the recipient if registered, or name and address and the address of delivery with state if unregistered; the serial number and date of the corresponding tax invoice or invoices; the value of the taxable supply, the rate of tax and the amount of tax credited to the recipient; and the signature or digital signature of the supplier or an authorised representative. The generator lays out each of these, and adds the reason and settlement method, which are not mandatory but make reconciliation simpler.

The supplier reports credit notes issued to registered recipients in Table 9B of GSTR-1 for the month of issue, invoice-wise, and credit notes to unregistered recipients in the same table as consolidated figures. The amounts flow into GSTR-3B and reduce the output tax for that month. The recipient sees the credit note in GSTR-2B and, under the Invoice Management System, must accept it; on acceptance the recipient reverses the input credit taken on the original invoice. If the recipient rejects the credit note, the supplier liability is not reduced. From the amendments effective 2025, the reduction in supplier liability is linked to the recipient reversing the credit, so getting the credit note acknowledged matters.

Yes. Section 34(2) says the details of a credit note must be declared in the return for the month of issue, and not later than 30 November following the end of the financial year in which the original supply was made, or the date of filing the annual return, whichever is earlier. So a credit note against an invoice dated anywhere in FY 2025-26 must be declared by 30 November 2026 at the latest. After that date a credit note can still be issued commercially, but the GST on it cannot be reduced; it becomes a financial credit note and the tax already paid stays paid. Plan year-end discounts and returns accordingly.

Only with GST reduction if the conditions in Section 15(3)(b) are met: the discount is established under an agreement entered into at or before the time of supply and is specifically linked to the relevant invoices, and the recipient reverses the input credit attributable to the discount. A year-end turnover discount agreed in the dealer agreement at the start of the year qualifies; a discount decided afterwards to settle a dispute does not. For discounts that do not qualify, issue a financial credit note that reduces the amount receivable but shows no GST, and select the no-GST option in the generator so the tax columns are omitted.

Both are issued by the supplier under Section 34. A credit note reduces the value or tax of an earlier invoice, for returns, discounts, deficiencies or over-charging; it decreases the supplier output tax and the recipient input credit. A debit note increases the value or tax of an earlier invoice, for example when a price escalation applies after the invoice or tax was charged at a lower rate than applicable; it increases the supplier output tax and gives the recipient additional input credit. Unlike credit notes, there is no outer time limit for declaring a debit note, though the recipient can claim the extra credit only within the normal time limit. The GST invoice generator on this site can be adapted for a debit note by labelling it as such.

Yes, if you are a registered supplier and the original sale was on a tax invoice or a B2C invoice, a credit note is the proper way to reduce your output tax when a walk-in customer returns goods and you refund them or give store credit. Credit notes to unregistered recipients are reported in GSTR-1 as consolidated figures rather than invoice-wise. For small retail returns many shops use a return memo in their billing software that generates the credit note automatically; this tool does the same thing for a business without such software. Enter the customer name and address and leave the GSTIN blank, and the note shows the recipient as unregistered.

No. The document is rendered in your browser and nothing is sent or saved. Save the PDF with the credit note number and the original invoice number in the file name, record it in your sales register against the invoice, and enter it in GSTR-1 for the month. Keep the recipient acknowledgement, since the reduction in your liability now depends on them accepting the note.