What are the details required in a Credit Note and Debit Note under GST?

Author
By Sakshi Shah on February 18, 2019

A Credit Note or Debit Note is a document which a seller issues to the buyer for making an adjustment to the original invoice issued.

  • Credit Note – It is issued when the value of invoice reduces. The buyer is liable to make lesser payment to the seller after adjusting the value of credit note from the original invoice issued to the buyer.
What is a Credit Note under GST?
  • Debit Note – It is issued when the value of invoice increases. The buyer is liable to make more payment to the seller after adjusting the value of debit note from the original invoice issued to the buyer.
What is a Debit Note under GST?

The supplier is free to design the format provided it contains all the mandatory details prescribed by the GST Invoice Rules.

A Credit Note and Debit Note must have the following mandatory fields, as per the GST Invoice Rules:

  1. Seller’s details
    • Legal name of the business
    • Registered address of the business
    • GSTIN of the state from which goods or services are supplied
  2. Buyer’s details
    • Legal name of the business
    • Registered address of the business
    • GSTIN of the state to which goods or services are delivered
    • Delivery address if is different from the registered address
  3. Document details
    • Nature of the document – whether Credit Note or Debit Note
    • Note Number – A serial number, containing alphabets or numerals or special characters like hyphen or dash (-) and slash (/) unique for a financial year
    • Date of issue of Credit Note or Debit Note
    • Details of Original Invoice – Invoice Number and Date of the original Tax Invoice or Bill of Supply
    • Place of Supply – Name of the state as per the place of supply rules. It is generally the state of the buyer. [List of State Codes under GST]
  4. Item details
  5. Tax details
    • Rate of Tax (Central tax, State tax, Integrated tax, union territory tax or cess)
    • Amount of tax charged in respect of taxable goods or services (CGST, SGST, IGST, UTGST, Cess)
  6. Signature or Digital Signature of the supplier or his authorized representative
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