A credit note format for returns, overcharges and post-sale discounts, with the fields a GST credit note needs, a filled sample and a free template you can fill online.
When to issue a credit note
A credit note reduces what a customer owes on an invoice you have already issued. Under GST you use it when:
- the taxable value or tax charged on the invoice was more than it should be;
- goods are returned by the buyer;
- goods or services supplied are found deficient;
- you give a discount after the sale that was agreed earlier.
You never edit the original invoice. The credit note sits against it and both stay in your records.
Fields a GST credit note needs
- Supplier name, address, GSTINrequired
- Nature of documentrequiredWrite CREDIT NOTE at the top.
- Serial numberrequiredOwn series, up to 16 characters, unique in the financial year.
- Date of issuerequired
- Recipient detailsrequiredName, address, GSTIN if registered.
- Original invoice number and daterequiredOne or more invoices it relates to.
- Value, rate and tax creditedrequiredTaxable value, tax rate, tax amount.
- Signaturerequired
The list follows Rule 53 as summarised by the GST Council. Debit notes use the same fields.
Credit note format sample
CREDIT NOTE
14, Sunrise Complex, CG Road, Ahmedabad 380009
GSTIN: 24ABCDE1234F1Z5
Date: 14 Oct 2026
Against invoice: INV-2026-0031 dated 02 Oct 2026
Issued to: Neelkanth Builders LLP, Ahmedabad. GSTIN 24AAKFN5678Q1Z2
| # | Description | HSN | Qty | Rate | Taxable value |
|---|---|---|---|---|---|
| 1 | Return of damaged LED panels | 9405 | 4 Nos | 450.00 | 1,800.00 |
| Amount | |
|---|---|
| Taxable value | 1,800.00 |
| CGST @ 9% | 162.00 |
| SGST @ 9% | 162.00 |
| Credit note value | 2,124.00 |
Reason: Goods returned (damaged in transit).
Amount in words: Rupees Two Thousand One Hundred Twenty Four Only
For Aarav Electricals
Authorised Signatory
Credit note vs debit note
| Credit note | Debit note | |
|---|---|---|
| Effect on buyer dues | Reduces | Increases |
| Typical reason | Return, excess charge, post-sale discount | Short charge, price increase, extra freight |
| Issued by (under GST) | Supplier | Supplier |
In general accounting a buyer also sends a debit note to a supplier when returning goods. Under GST, the document that changes tax is issued by the supplier. See the debit note format.
Download
The online maker has a dedicated credit note type with an “Against invoice” field.
Frequently asked questions
Can a credit note be issued without GST?
Yes. Businesses not registered under GST also use credit notes for returns and allowances, just without tax lines.
Is there a time limit for GST credit notes?
Yes, GST law sets a deadline linked to the financial year. Check the current limit with your accountant or on the GST portal before issuing a late credit note.
Can one credit note cover many invoices?
Yes. GST rules allow a credit note to refer to one or more invoices. List each invoice number and date.
Does a credit note need the customer signature?
No. It needs the supplier signature or authorised signatory.
Checked and updated 14 Oct 2026. Independent template site; not tax or legal advice.