Free Credit Note Generator
Create a GST credit note online for a return or an amount billed too high, against the original invoice. No sign-up needed to start.
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What is a credit note under GST?
A credit note is what a seller issues to reduce an invoice it has already raised. Section 34 of the CGST Act lets a registered supplier issue one when the invoice charged more value or tax than was due, when the buyer returns goods, or when the goods or services turn out to be deficient.
It lowers your output GST on that sale, and the buyer's input tax credit with it. One credit note can cover several invoices from the same financial year, as long as it names each of them (Rule 53(1A)).
There's a deadline. Declare the credit note in your return by 30 November following the end of the financial year of the original sale, or by the date you file that year's annual return, if that's earlier (Section 34(2)). For a sale made in 2025-26, the latest date is 30 November 2026.
Since 1 October 2025 there's a second condition. If the buyer is GST-registered, your output tax comes down only once they reverse the input tax credit on the note, usually by accepting it in the GST portal's Invoice Management System (IMS). If the buyer isn't registered, it comes down only if the tax hasn't been passed on to anyone else.
Credit note format: what it must show (Section 34 and Rule 53)
Section 34 says a credit note must contain the prescribed particulars, and Rule 53(1A) of the CGST Rules prescribes them:
- Your name, address and GSTIN.
- The nature of the document: say clearly that it's a credit note.
- A serial number of up to 16 characters (letters, numbers, - and /), consecutive and unique for the financial year.
- The date of issue.
- The buyer's name, address and GSTIN or UIN, if registered.
- For an unregistered buyer: their name and address, the delivery address, and the state's name and code.
- The serial number and date of each tax invoice (or bill of supply) it adjusts.
- The taxable value, the GST rate and the amount of tax credited to the buyer.
- The signature or digital signature of the supplier or an authorised representative.
Source: Section 34, CGST Act, 2017; Rule 53(1A), CGST Rules, 2017.
How to create a credit note with this generator
Add both parties
Type your business name, address and GSTIN, then the buyer's, exactly as they were on the original invoice.
Enter the original invoice
Type the number and date of the invoice you're reducing. The editor checks the date against the Section 34 deadline and warns you if it has passed.
Pick the reason
Choose why you're issuing it: sales return, post-sale discount, deficiency in service, correction in invoice, change in place of supply, or another reason you describe.
Add only what you're crediting
Add a line for each item being reduced, with its HSN/SAC code, quantity, unit, rate and GST rate. Credit just the part that changes, such as the 3 units returned, not the whole invoice.
Match the tax type
Use the same tax type as the original invoice, CGST + SGST or IGST; with both GSTINs typed in, the editor sets it for you. It then totals the GST credited.
Download it
Pick a template and colour, press Download and sign up free. In your account every note belongs to an invoice, so you'll pick that invoice (or add it first) before you save and download the PDF.
Credit note vs debit note
Both correct an invoice after it's issued, and under GST both are issued by the supplier. They move the invoice in opposite directions.
| Credit note | Debit note | |
|---|---|---|
| What it does | Credit note: Reduces the value or tax on an invoice. | Debit note: Increases the value or tax on an invoice. |
| When it's used | Credit note: Too much was charged, goods came back, or the supply was deficient. | Debit note: Too little was charged, such as a price rise or tax at a lower rate than due. |
| Is it required? | Credit note: Optional: the supplier 'may' issue one (Section 34(1)). | Debit note: Required: the supplier 'shall' issue one (Section 34(3)). |
| Your GST | Credit note: Goes down, once the conditions in Section 34(2) are met. | Debit note: Goes up in the month you issue it. |
| Buyer's input tax credit | Credit note: Goes down; a registered buyer reverses it. | Debit note: Goes up; the buyer can claim the extra. |
| Time limit | Credit note: Declare it by 30 November after the year of the sale, or the annual return date if earlier. | Debit note: None for issuing it; the buyer's claim has its own limit under Section 16(4). |
| Where in the law | Credit note: Section 34(1)-(2) and Rule 53(1A). | Debit note: Section 34(3)-(4) and Rule 53(1A). |
Frequently asked questions
Credit note kya hota hai?
Credit note seller ka document hai jo pehle diye gaye invoice ki value ya GST kam karta hai. Isse aapka output GST aur buyer ka input tax credit, dono kam hote hain.
Credit note kab issue karte hain?
Jab invoice mein zyada value ya tax lag gaya ho, buyer ne maal wapas kiya ho, ya saman ya service mein kami nikli ho. Section 34 mein yahi teen kaaran diye gaye hain.
What is the time limit for a credit note under GST?
Declare it in a return by 30 November following the end of the financial year of the original sale, or by the date you file that year's annual return, whichever is earlier. For a sale made in 2025-26, that's 30 November 2026 at the latest.
Can I issue a credit note after the deadline?
You can still give the buyer a credit note to settle the account between you, but it won't reduce your GST: Section 34(2) allows that only up to the deadline.
Does the buyer have to do anything?
If they're GST-registered, yes. Since 1 October 2025, your output tax comes down only once they reverse the matching input tax credit, usually by accepting the note in the GST portal's Invoice Management System (IMS).
Can one credit note cover several invoices?
Yes. Section 34 allows one or more credit notes for the supplies of a financial year, and Rule 53(1A) lets a note list the number and date of every invoice it covers.
Can I give a discount through a credit note?
Yes, but whether it lowers your GST depends on the conditions for discounts after the sale in Section 15(3)(b) of the CGST Act. If they aren't met, the discount doesn't reduce the taxable value, so check with your CA.
Where do I report a credit note?
In your GSTR-1 for the month or quarter in which you issue it. If you e-invoice, a credit note to a registered buyer needs an IRN too.
More free formats
Guides to GST invoicing, quotations, challans and more: read the CredHill blog.
Last reviewed .