GST formats
Credit note format under GST
A credit note reduces the value or tax of an invoice you have already issued, for example when goods come back or you overbilled. This credit note format lists the particulars Rule 53 of the CGST Rules asks for, the Section 34 time limit, and how the note reaches GSTR-1.
- Every particular Rule 53(1A) requires, in one table
- When Section 34 lets you issue a credit note
- The time limit, explained with a worked example
- How the buyer’s ITC reversal now affects you
Sample credit note format
- Credit note no.
- CN/26-27/0006
- Date
- 08 Sep 2026
- Original invoice
- INV/26-27/0142 dated 01 Sep 2026
- Reason
- Goods returned (damaged in transit)
- Place of supply
- Maharashtra (27)
| # | Description | HSN | Qty | Rate (₹) | GST | Amount (₹) |
|---|---|---|---|---|---|---|
| 1 | Ceiling fan 1200 mm | 8414 | 2 Nos | 1,850.00 | 18% | 3,700.00 |
Amount in words: Rupees Four Thousand Three Hundred Sixty Six Only
- The amount above is credited to your account against the original invoice.
| Taxable value | 3,700.00 |
| CGST @ 9% | 333.00 |
| SGST @ 9% | 333.00 |
| Total | ₹4,366.00 |
The sample follows the layout of a tax invoice: supplier and buyer details, HSN, taxable value and the GST split. The difference is that every amount is the amount being reduced, and the note names the original invoice it adjusts. Keep the tax type the same as the original invoice: if the invoice charged IGST, the credit note credits IGST.
Fields in a GST credit note format
| Field | What to write | Mandatory? |
|---|---|---|
| Supplier details | Your name, address and GSTIN | Yes |
| Nature of document | Print “Credit Note” clearly at the top | Yes |
| Credit note number | Consecutive serial number, up to 16 characters (letters, numbers, hyphen or slash), in one or more series | Yes |
| Date of issue | The date you issue the note | Yes |
| Recipient (registered) | Name, address and GSTIN or UIN of the buyer | Yes, if registered |
| Recipient (unregistered) | Name, address, delivery address, and the State name and code | Yes, if unregistered |
| Original invoice | Serial number(s) and date(s) of the tax invoice(s) or bill(s) of supply being adjusted | Yes |
| Value and tax | Taxable value, GST rate and the CGST + SGST or IGST credited to the buyer | Yes |
| Signature | Signature or digital signature of the supplier or an authorised person | Yes |
| Reason | For example “goods returned” or “rate charged in excess” | Good practice |
When to issue a credit note
Section 34(1) of the CGST Act lets the supplier issue a credit note in three situations:
- Overcharged value or tax. The taxable value or tax on the invoice is more than what was actually payable, for example a wrong rate or a price error.
- Goods returned. The buyer sends back some or all of the goods.
- Deficient goods or services. What you supplied turned out to be deficient and you agree to reduce the bill.
You can issue one or more credit notes for supplies made in a financial year, so a single note can refer to several invoices, provided each one is listed.
Time limit and the buyer’s ITC
Under Section 34(2), you declare a credit note in the return for the month in which you issue it. You cannot reduce your tax through a credit note declared after 30 November following the end of the financial year in which the supply was made, or after you file that year’s annual return, whichever is earlier.
Example: for a supply made in FY 2025-26 (April 2025 to March 2026), the last date is 30 November 2026. If you file the FY 2025-26 annual return earlier, say in October 2026, that filing date becomes the limit.
Since 1 October 2025, the proviso to Section 34(2) also blocks the reduction in your output tax if a registered buyer has claimed ITC on the note and not reversed it (for other buyers, if the tax was passed on to someone else). Buyers act on credit notes in the Invoice Management System (IMS) on the GST portal. From the October 2025 tax period, they can keep one pending for one tax period. Tell the buyer when you issue a note, and follow up if it stays pending.
How to fill in a credit note
- 1
Find the original invoice
Note its number, date, HSN, rates and whether it charged CGST + SGST or IGST.
- 2
Confirm the reason
Return, excess charge or deficiency. Get the return or the agreed reduction in writing.
- 3
Number and date the note
Use your credit note series, not the invoice series, and keep it within 16 characters.
- 4
Enter the reduced lines
List only the quantity or value being reduced, with the same HSN and GST rate as the invoice.
- 5
Sign, send and report
Share it with the buyer and report it in GSTR-1 for the month of issue.
In GSTR-1, credit notes issued to registered buyers go in Table 9B (CDNR). Notes for inter-State supplies to unregistered buyers where the invoice was above ₹1 lakh (B2C Large; ₹2.5 lakh for periods up to July 2024) and for exports go in Table 9B (CDNUR). If e-invoicing applies to your business, credit notes are reported to the IRP as well. See GST return filing for how returns fit together.
Common credit note mistakes
- No original invoice reference. Rule 53 requires the invoice number and date; a note without it is hard to defend.
- Missing the deadline. After the 30 November cut-off (or the annual return, if earlier) you cannot cut your GST through the note.
- Wrong tax type. Crediting CGST + SGST against an IGST invoice, or the other way round.
- Crediting more than was billed. The reduction cannot exceed the original taxable value and tax.
- Not telling the buyer. If the buyer does not reverse ITC, your own reduction can be denied.
Create a credit note in JustBill
Credit notes have their own list under Sales in JustBill, with a separate number series. JustBill works out CGST + SGST or IGST from your State and the customer’s. Type the original invoice number and date in the Reference No. field; it prints on the credit note PDF.
- The credit note reduces the customer’s balance in their party ledger.
- If the note includes stock items, their quantity goes back into stock. Lines not linked to a stock item do not move stock.
- JustBill’s GSTR-1 JSON export places credit notes issued to registered customers in the CDNR section.
- JustBill also has a separate Sales Return voucher. The GSTR-1 export reads credit notes, so issue a credit note for any return that should reduce your GST.
Credit notes are part of GST billing in JustBill. Plan limits and e-invoicing availability are on the pricing page.
Frequently asked questions
What is the time limit for issuing a credit note under GST?
Under Section 34(2), the credit note must be declared no later than 30 November following the end of the financial year of the original supply, or the date you file that year’s annual return, whichever is earlier. After that you cannot reduce your GST liability through it.
What is the difference between a credit note and a debit note?
A supplier issues a credit note to reduce the value or tax of an earlier invoice, and a debit note to increase it. Both are covered by Section 34 and must quote the original invoice. See the debit note format.
Can one credit note cover several invoices?
Yes. Section 34(1) allows one or more credit notes for supplies made in a financial year, and Rule 53 asks for the serial numbers and dates of the corresponding invoices, so list every invoice the note adjusts.
Does the buyer have to reverse ITC when I issue a credit note?
Yes, if the buyer is registered and has claimed the ITC. From 1 October 2025, the supplier cannot reduce output tax through the credit note until that ITC has been reversed. The buyer handles this through IMS on the GST portal.
Where is a credit note reported in GSTR-1?
Notes issued to registered buyers go in Table 9B (CDNR). Notes for inter-State B2C Large supplies and exports go in Table 9B (CDNUR). Report the note in GSTR-1 for the month you issue it.
Do I need a credit note for a sales return?
Yes. When goods are returned and you want to reduce the tax you charged, Section 34 requires a credit note that refers to the original invoice.
Last updated:
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