In short
A credit note is issued by a seller to reduce the value of an earlier invoice: for returned goods, a discount after the sale, or a price or tax charged too high. Under GST (Section 34 of the CGST Act) it must show the seller's name, address and GSTIN, a consecutive credit note number and date, the buyer's details, the original invoice number and date, the value and tax being reduced, and a signature. It must be issued by 30 November after the end of the financial year of the original sale, or before filing the annual return, whichever is earlier.
Fields to include
- The title "Credit Note"
- Seller name, address and GSTIN
- Credit note number (its own series) and date
- Buyer name, address and GSTIN
- Original invoice number and date
- Items, taxable value and GST being reduced
- Reason: return, discount, rate difference
- Signature
When to use it
- Goods returned or rejected by the customer
- A discount or rebate agreed after the invoice
- An invoice that charged too much price or tax
How to make one online
Open the free credit note maker
Tap "Make this credit note free". It opens in your browser; no signup.
Fill in the fields
Type your details, your customer's and the items. Totals and the CGST, SGST or IGST split are worked out for you.
Download or send
Download the PDF to print or share. Sign up free to save it and send it on WhatsApp or email.
Frequently asked questions
What is the difference between a credit note and a debit note?
A credit note reduces what the buyer owes; a debit note increases it, for example when you undercharged.
Is there a time limit for a GST credit note?
Yes: by 30 November after the end of the financial year of the original invoice, or the date you file the annual return, whichever is earlier.
Does a credit note reduce the customer's balance?
Yes. With Receivables on, a credit note lowers the customer's outstanding and can be applied to their open invoices.
More questions? See the Receipt Book FAQ.
Sources
This page explains the rules in general terms as of November 2026. It is not tax or legal advice; check your case with your CA.
More formats
- Invoice format The standard invoice layout with every field a customer and your CA expect. Free, no signup
- GST invoice format Tax invoice with GSTIN, HSN/SAC, place of supply and the CGST, SGST or IGST split. Free, no signup
- Bill format A shop or service bill: items, quantity, rate, total, paid by cash or UPI. Free, no signup
- Quotation format A price quote with validity date, items, GST and terms. Free, no signup
- Proforma invoice format An advance bill before the sale: for advance payment, import or a loan. Free, no signup
- Receipt format Payment receipt with amount, mode, reference and a PAID stamp. Free, no signup
- Purchase order format Order goods from a vendor with quantities, rates, delivery date and terms. Free, no signup
- Freelancer invoice format Invoice for freelancers and consultants: services, hours or milestones, UPI or bank details. Free, no signup
- Rent receipt format House or shop rent receipt with tenant, landlord, month, PAN and signature. Free, no signup
- Cash receipt format Cash or money receipt with amount in words, purpose and revenue stamp note. Free, no signup
- Bill of supply format Bill without GST for composition dealers and exempt supplies, with the Rule 5 line. Free, no signup
- Delivery challan format Challan for moving goods without a sale: job work, approval, branch transfer (Rule 55). Free, no signup