Download GST Debit & Credit Note formats
In this article, first, we will learn when GST debit and credit notes are issued. What should be the contents and in the end, we will provide Debit & Credit Note format in Excel and PDF format.
What are Credit Notes and Debit Notes in GST?
There are instances where there is a reduction in sales or increment in sales after the issue of tax invoices for which a separate tax invoice cannot be issued. In those cases, GST Credit Notes and Debit Notes are issued.
GST Credit Note under Section 34(1)
Credit notes are issued in the following cases
(1) One or more tax invoice for taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in such supply. In simple terms, a reduction in tax charged or taxable value is required.
(2) Where goods supplied are returned by the recipient.
For example, ABC Ltd supplied goods worth Rs. 1,000 to XYZ Ltd and issued a tax invoice. However, goods were returned by XYZ ltd for whatever reason. Now, ABC Ltd needs to issue a credit to reduce its outward supply.
(3) Where goods are found to be deficient with respect to quantity or pilfered or destroyed.
For example, ABC Ltd supplied 100 wooden boxes to XYZ Ltd. However, XYZ ltd received only 80 boxes. For 20 boxes a credit would be issued by ABC Ltd to reduce the outward supply with respect to 20 items.
Similarly, like a tax invoice a credit note needs to shown in GST return for a financial year but not later than,
(a) September following the end of financial year in which such sales was made or
(b) The date of filling annual return (GSTR-9) whichever is earlier.
GST Debit Note under Section 34(3)
A debit note is issued when one or more tax invoice for taxable value or tax charged in that invoice is found to be less than the taxable value or tax payable in respect of such supply. In simple terms, an increment in taxable value or tax charged is required.
However, it is to be noted that a debit note in GST also includes a Supplementary Invoice.
Also, a debit in the GST returns for the month during which Debit Note has been issued.
Contents of Debit Note or Credit Note
The contents of Debit Note and Credit Note are specified in Section 34 of the CGST act as amended by the Notification 3/2019 dated 29/01/2019. The contents are as follows.
(1) Name, Address & GSTIN of the supplier
(2) Nature of Document
(3) A consecutive serial number not exceeding sixteen characters.
(4) Date of Issue of the document
(5) Name, Address, GSTIN/UIN of the receiver if registered recipient.
(6) Name, Address of recipient, and Address of Delivery along with State name and code if unregistered recipient.
(7) Serial Number and Date of corresponding Tax invoice or Bill of Supply.
(8) Value of taxable supply of goods and services, Rate of Tax, and the amount of tax credited or debited to the recipient.
(9) Signature or Digital Signature
Don’t change the rate of tax on invoice and its corresponding debit or credit note. This is a silly mistake but it happens normally.
Download GST Debit & Credit Note format in Excel and PDF
We have provided a format of GST Debit Note and Credit Note. However, It should be edited as per your own terms.
In case you require GST Tax Invoice, Bill of Supply, and RCM invoice format download.
Frequently Asked Questions
Yes, GST Debit and Credit Notes are reflected in GST Return in GSTR-1 and the net balance in paid in GSTR-3B. The adjustments can be made in subsequent months also along with any interest if applicable.
Yes, a credit note can be issued for discount only if discount is agreed before making sale or their exist a policy of giving discounts. Otherwise a company cannot reduce sales by providing discounts later on. (Valuation Rules)
Also, Input Tax credit needs to be reversed by the recipient for the discount availed.
Akash Arora is a Chartered Accountant by profession and the founder of this website. His expertise areas include compliance with Goods and Service tax and Direct taxes in India. He has written more than 70+ blogs on GST and Direct tax.
Connect with him at +918588918033 and email@example.com