Central GST
[Where one or more tax invoices have] 1 been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient [or where a discount referred to in clause (b) of sub-section (3) of section 15 is given] 3, the registered person, who has supplied such goods or services or both, may issue to the recipient [one or more credit notes for supplies made in a financial year] 2 containing such particulars as may be prescribed.
1 Substituted for the words "Where a tax invoice has" vide “The Central Goods and Services Tax (Amendment) Act , 2018” dt 30.08.2018
2 Substituted for the words "a credit note" vide “The Central Goods and Services Tax (Amendment) Act , 2018” dt 30.08.2018
3 Inserted vide Sec 154 of the Finance Act, 2026 dt 30.03.2026. Effective from a date to be notified later.
Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than 1 [the thirtieth day of November] following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed:
2 [Provided that no reduction in output tax liability of the supplier shall be permitted, if the––
(i) input tax credit as is attributable to such a credit note, if availed, has not been reversed by the recipient, where such recipient is a registered person; or
(ii) incidence of tax on such supply has been passed on to any other person, in other cases.]
1 Substituted for the word "September" vide Sec. 102 of The Finance Act , 2022 (6 of 2022). Made effective from 1.10.22 vide Notf 18/2022-CT dt 28.9.2022.
2 Substituted vide Section 126 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 1.10.2025 (vide Notf 16/2025-CT dt 17.9.2025) Before, it read as,
"Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person."
[Where one or more tax invoices have] 1 been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient [one or more debit notes for supplies made in a financial year] 2 containing such particulars as may be prescribed.
1 Substituted for the words "Where a tax invoice has" vide “The Central Goods and Services Tax (Amendment) Act , 2018” dt 30.08.2018
2 Substituted for the words "a debit note" vide “The Central Goods and Services Tax (Amendment) Act , 2018” dt 30.08.2018
Any registered person who issues a debit note in relation to a supply of goods or services or both shall declare the details of such debit note in the return for the month during which such debit note has been issued and the tax liability shall be adjusted in such manner as may be prescribed.
Explanation.––For the purposes of this Act, the expression “debit note” shall include a supplementary invoice.
