Templates
Credit note format under GST, free in Excel, Word and PDF
A credit note reduces what a customer owes on an invoice you have already issued: goods came back, the rate was too high, or the service fell short. Download the format with the fields rule 53 asks for.
Free download, no sign-up
Filled with the sample shown. The Excel file has formulas for tax and totals.
In short
A GST credit note is issued by the supplier to reduce the taxable value and tax on an earlier invoice, for returns or overcharges. The download here is free, and SimpleERP posts the same note against the invoice, reversing tax and stock.
Lakshmi Steel Furnitures
GSTIN 33AAACL1234A1ZG
Credit note
CN-2026-27-0003
Issued to: Annai Enterprises
- Office chair mesh2 Nos
- Steel rack 4 shelf1 Nos
- LED panel 2×23 Nos
What this document is for
Once a tax invoice is issued it is not edited. If the customer returns goods or you charged too much, section 34 of the CGST Act lets the supplier issue a credit note that refers to the original invoice. It reduces your output tax and the customer's input tax credit by the same amount.
- Returns: two chairs came back damaged, so their value and GST are credited.
- Price corrections: the invoice used last month's rate; the difference is credited.
- Deficient service: part of the work was not done and the customer will not pay for it.
What a credit note must contain
Rule 53 of the CGST Rules lists the particulars. The template carries every one of them.
- Your name, address and GSTIN as the supplier issuing the note.
- The words "Credit note" as the nature of the document.
- A serial number of up to 16 characters, unique in the financial year, such as CN-2026-27-0003, and the date of issue.
- The customer's name, address and GSTIN if registered.
- The original invoice number and date the note corrects.
- Taxable value, GST rate and tax credited per line, with the total.
- Your signature or digital signature, or that of an authorised person.
How to fill the template
Put your header in once
Replace Lakshmi Steel Furnitures with your name, address and GSTIN. Keep the title "Credit note".
Number it in its own series
Credit notes need their own serial numbers, separate from invoices, and the date you issue the note.
Quote the original invoice
Write the invoice number and date. A note may refer to more than one invoice; list each.
Enter only what is being credited
Returned quantity at the invoiced rate, or the rate difference on the full quantity. Never more than the invoice carried.
Charge the same GST rate and split
Use the rate and the CGST and SGST or IGST split of the original invoice, then sign and send it.
| Item | HSN | Qty | Rate | Amount |
|---|---|---|---|---|
| Office chair mesh | 9401 | 2 Nos | ₹6,450.00 | ₹12,900.00 |
| Steel rack 4 shelf | 9403 | 1 Nos | ₹4,990.00 | ₹4,990.00 |
| LED panel 2×2 | 9405 | 3 Nos | ₹1,850.00 | ₹5,550.00 |
| Taxable value credited | ₹23,440.00 | |||
| CGST 9% + SGST 9% | ₹4,219.20 | |||
| Round off | −₹0.20 | |||
| Credit note total | ₹27,659.00 |
Make it in SimpleERP instead
Open the invoice and choose Credit note. The lines are copied from the invoice; reduce the quantities to what came back, give a reason, and post. Tax and stock are reversed in the same step.
- Capped at what was invoiced. Quantity and value cannot exceed the invoice line, less earlier notes.
- Output GST reverses in the same CGST and SGST or IGST split as the invoice.
- Returned goods go back into stock at the cost they left at, when Returns stock is on. Turn it off for a price correction.
- Apply it to open invoices or refund it in cash or to the customer's bank, and the balances update.
- Prints titled "Credit note" with "Against invoice" and the reason.
Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.
Fields
Every field on a credit note, and why
Rule 53(1A) lists the particulars of a credit or debit note; section 34 of the CGST Act sets when a supplier may issue one and the time limit for declaring it.
| Field | Required | Why |
|---|---|---|
| Supplier name, address and GSTIN | Mandatory | Identifies who is reducing their output tax. |
| Nature of document ("Credit note") | Mandatory | Distinguishes it from an invoice or debit note. |
| Serial number, up to 16 characters, unique in the financial year | Mandatory | Needed to report the note and keep the series auditable. |
| Date of issue | Mandatory | Decides the tax period in which the reduction is declared. |
| Recipient name, address and GSTIN if registered | Mandatory | The recipient must reverse the matching input tax credit. |
| Recipient name, delivery address, state name and code if unregistered | If applicable | Rule 53 asks for these when the customer has no GSTIN. |
| Serial number and date of the original invoice | Mandatory | Links the reduction to the tax charged earlier. |
| Taxable value, rate of tax and amount of tax credited | Mandatory | The figures the supplier and recipient each adjust. |
| Signature or digital signature of the supplier or authorised representative | Mandatory | Authenticates the note. |
| Reason for the credit | Good practice | Return, rate correction or deficiency, so an auditor can follow it. |
Source: CGST Rules 2017, rule 53, verified 10 October 2026.
Common mistakes
Mistakes to avoid on a credit note
- Editing or cancelling the original invoice instead of issuing a credit note, which leaves the GST already reported unexplained.
- Numbering credit notes in the invoice series, so the invoice series shows a gap and the notes are hard to report.
- Leaving out the original invoice number and date, which rule 53 requires.
- Crediting at today's rate or GST rate instead of the rate on the original invoice.
- Issuing the note after the 30 November cut-off and still reducing output tax for it.
- Crediting more quantity than was invoiced, often when a second return on the same invoice is missed.
Honest limits
Honest limits
- No e-invoice (IRN) for credit notes. If your turnover requires e-invoicing, report the note on the IRP yourself.
- No GST return filing. Your accountant reports the note in GSTR-1 from the posted documents.
- A note cannot be edited after posting. Cancel it while nothing is applied or refunded, then issue a new one.
Getting started
Start with your first credit note
Sign up with your phone number
Enter your business name and GSTIN; GST rates and numbering series are set for you.
Add your products and customers
Type them in or import products from a CSV file.
Raise and post an invoice
The credit note will refer to it.
Choose Credit note on the invoice
Reduce the quantities, add the reason and post.
FAQ
Questions, answered
Is a credit note mandatory under GST?
It is the way the law allows a supplier to reduce tax already charged on an invoice. If goods come back or you overcharged and you do not issue a credit note, the output tax on the original invoice stays as it was.
Can a credit note reduce GST already paid?
Yes. Under section 34 the supplier reduces output tax in the return for the month the note is declared, subject to a time limit: no later than 30 November after the end of the financial year, or the annual return if filed earlier. The customer must reverse the matching input tax credit.
Can one credit note cover several invoices?
Yes. Rule 53 asks for the serial numbers and dates of the corresponding invoices, so one note may list more than one. Keep the GST rate and split of each line the same as on the invoice it corrects.
What does the credit note in the download total?
Two chairs, one rack and three LED panels returned by Annai Enterprises: ₹23,440.00 taxable, ₹4,219.20 GST, ₹27,659.00 after round off. The Excel file computes it with formulas.
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