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Credit Note Generator

Issue a GST credit note when you need to reduce an invoice you've already raised — goods returned, a discount given after the sale, or a rate charged too high. Link it to the original invoice, list the items and amounts being credited with their GST, and download a PDF.

Rates and rules last reviewed:

For guidance only

This calculator gives an estimate for general information. It is not tax or legal advice. Check the applicable rate and rules for your case on the official sources below or with a qualified professional.

How to use the Credit Note Generator

  1. Enter the credit note number and date, and the original invoice number and date.
  2. Choose the reason for the credit.
  3. List only the items and amounts being credited — not the whole original invoice.
  4. Download and send it to your customer, and report it in your GST return.

When to issue a credit note

  • The taxable value or tax charged on an invoice was more than it should have been.
  • The customer returned goods.
  • Goods or services supplied were found deficient.
  • You've agreed a discount after the sale that meets the conditions in the GST law.

A credit note reduces your output tax and the customer's input tax credit by the same amount. It must refer to the original invoice. Never edit an invoice after it's issued — issue a credit note instead.

Details a credit note must show

  • The words “Credit Note”, a serial number (up to 16 characters, unique for the year) and the date.
  • Your name, address and GSTIN; the customer's name, address and GSTIN if registered.
  • The number and date of the original invoice.
  • The taxable value, GST rate and GST amount being credited.
  • A signature.

Deadline to report it

Important

A credit note for a supply made in a financial year must be declared in a return by 30 November after that year ends, or by the date you file the annual return if that's earlier. After that, the GST on it can't be reduced.

Your data stays with you

Everything you type stays in your browser and is saved on this device only. Nothing is uploaded to our servers.

Worked example

2 of 10 chairs returned from invoice INV/26-27/045

  1. 2 × ₹2,500 = ₹5,000 taxable
  2. GST 18% = ₹900 (CGST ₹450 + SGST ₹450)

Credit note for ₹5,900 against INV/26-27/045

Important notes

  • Use the GST rate charged on the original invoice, even if the rate has changed since.

Frequently asked questions

What is the difference between a credit note and a debit note?

A credit note reduces the amount on an earlier invoice; a debit note increases it. Both must refer to the original invoice.

Can I issue one credit note for several invoices?

Yes, a single credit note can cover more than one invoice. List each original invoice so the adjustment is clear.

Is a credit note the same as a refund?

No. A credit note records that the customer owes you less. You may then refund the money or adjust it against future invoices, as agreed.

Sources and review

Last reviewed on by the BizToolsIndia editorial team. Official references:

Spotted an error or a rate change? Tell us.

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