A credit note is how a supplier withdraws tax he already charged. Pick the reason, enter the original invoice number and date, and the tax reversal is worked out for you — then report it in GSTR-1 as document type C.
The reason drives the narration, the default credit note number and the basis of reversal.
The buyer returned the entire consignment. The full invoice value and the whole of the GST charged on it are reversed.
Compulsory particulars: Original invoice number and date, reason for issue, description of goods credited, rate and amount of tax reversed
The original invoice number and date are compulsory under Section 34 of the CGST Act.
A credit note needs its own series (CN-001, CN-002 …) that never overlaps your invoice series. The invoice number you enter below is only the reference being corrected — it is not the number of this document.
The registered person who issued the original invoice and is now reversing the tax.
Enter the invoiced quantity and the quantity actually credited. Tax is reversed only on the credited quantity.
Return logistics, bank refund details, or the acceptance terms printed on the credit note.
Address
Phone: — · State: —
GSTIN: — ·
Credit Note No.: —
Date: —
Issued By: —
Invoice No. — dated — · Invoice value — · Place of supply —
Credit To (Buyer)
Buyer
Address
Phone: —
GSTIN: —
Supplier
Supplier
GSTIN: —
GSTR-1 doc type: C — Credit Note
| # | Goods / Service Credited | HSN | Inv Qty | Credit Qty | Rate | GST% | Tax Rev. | Credit |
|---|---|---|---|---|---|---|---|---|
| No items yet | ||||||||
| Original Invoice Value | ₹0.00 |
| Taxable Value Credited | ₹0.00 |
| Total Tax Reversed | −₹0.00 |
Reason: —
—
Both documents post against a previous invoice, but they move the number in opposite directions and they are reported to the GST department in different ways. Picking the wrong one means the tax is either reversed when it should have been added, or added when it should have been reversed.
| Point of comparison | Credit Note | Debit Note |
|---|---|---|
| Who issues it | Supplier, against an invoice he has already raised | Supplier, to add charges to an invoice already raised (or the buyer, for short / defective receipt) |
| Effect on the invoice value | Reduces it — the buyer owes less, or gets a refund | Increases it — the buyer has to pay more |
| Effect on GST | Reverses the tax already charged (100% on full cancellation, proportionate on a partial return) | Adds new tax on the supplementary charge. The original tax is not reduced |
| GSTR-1 document type | C — Credit Note | DN — Debit Note by the supplier · D — by the recipient |
| Typical reason | Goods returned, damaged, short supplied, or a price correction after invoicing | Freight, installation, interest on delay, job-work charges, shortage penalty |
| Compulsory particulars | Invoice no. & date Reason Goods credited Tax reversed | Invoice no. & date Charges added Reason if additional |
| Number series | Separate series, typically CN-001 onwards | Separate series, typically DN-001 onwards |
| Time limit | Up to 30 November of the following financial year (Section 34) | Best raised in the same month the extra charge is incurred |
Goods return, damage, short supply, price correction or a note raised by the buyer. The narration and the reversal basis are filled in for you.
The number and date of the invoice being corrected. Without these the credit note is not valid under Section 34 and the buyer cannot reverse input credit.
Enter the invoiced quantity and the quantity actually credited. Tax is reversed only on the credited quantity, split into CGST and SGST or IGST.
Download the PDF, get the buyer's acknowledgement, and report the same number in GSTR-1 and GSTR-3B in the month of issue.
A credit note is a document issued by a supplier to reduce or completely withdraw a tax invoice he has already issued. Once an invoice has been reported in GSTR-1 and the GST on it deposited through GSTR-3B, the supplier cannot simply edit the invoice. The lawful way to correct it is to raise a credit note in a series of its own — CN-001, CN-002 and so on — that clearly states the number and date of the invoice being corrected, the reason for the credit, the description and quantity of the goods or services being credited, the rate of tax and the amount of tax being reversed. Section 34 of the CGST Act makes those particulars compulsory; a credit note missing the reference invoice number cannot be defended in an audit.
Tax reversal is proportional to what is credited. A complete cancellation of a supply reverses 100% of the GST that was charged. A partial return of two of ten units reverses tax on two units. A price correction where the invoice rate was too high reverses only the difference between the invoiced value and the corrected value — the quantity and the original rate stay on the books. Once the credit note is issued, the supplier reports it in GSTR-1 as document type C and the reversal flows into GSTR-3B table 4B, while the buyer reduces his input tax credit correspondingly. This tool builds the note with the correct own-number series, computes the CGST/SGST or IGST reversal line by line, and prints the amount in words with signature blocks for both the supplier and the buyer's acknowledgement — the combination that makes a credit note defensible if the department ever questions it.
Every business document has its own legal shape. Build the rest of your paperwork with the same free, instant-PDF approach.
My Metaji raises a credit note the moment a return is entered, numbers it in its own series, reverses the tax and keeps GSTR-1 and GSTR-3B ready to file.
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