How to make a credit note
- Enter the original invoice number and date. A credit note must point to the invoice it adjusts.
- Pick the reason: sales return, discount after sale, price reduced, deficiency or correction.
- Add the items or amounts being credited, with the same GST rate as the original invoice.
- Download or email it. Report it in your GSTR-1 for the month you issue it.
Common reasons
| Reason | What to enter |
|---|---|
| Sales return | The returned items at the original rate and GST |
| Discount after sale | One line for the discount value, at the invoice’s GST rate |
| Overcharged price | The difference between the charged and correct rate |
| Expired or damaged goods returned | The returned quantity, typical in pharma and FMCG distribution |
Charged too little instead? Use the debit note generator. To check the GST on an amount, use the GST calculator.