Debit note format

Two uses of the same name

The term is used in two ways in India, and mixing them up causes confusion:

1. GST debit note (supplier's document). Section 34(3) of the CGST Act: if the taxable value or tax in a tax invoice is less than what is payable, the supplier issues a debit note. Example: freight was left out, or a price increase was agreed after billing.
2. Purchase-return debit note (buyer's document). When you return goods to a supplier, you send them a debit note reducing your payable. For GST, the supplier's credit note is what reduces tax; your debit note is the commercial record that asks for it.

Sample debit note format

The sample uses made-up details. Switch between the Classic, Modern and Compact layouts, Print / PDF it on A4, or print a Blank template to fill by hand. Open in editor loads it into the free debit note generator, where you type straight onto the page and GST, totals and the amount in words are worked out for you.

What the format must contain

• Heading: Debit Note
• Issuer name, address and GSTIN
• Debit note number (up to 16 characters) and date
• Recipient name, address and GSTIN or state
• Original invoice number and date
• Reason for the debit note
• Description and HSN
• Quantity (for goods returns)
• Taxable value
• GST rate and tax amount
• Total amount
• Signature

Fields to include

A GST debit note follows Rule 53(1A), the same rule as credit notes: the words "Debit Note", supplier's name, address and GSTIN, a serial number of up to 16 characters unique for the year, date, recipient's details, the original invoice number and date, taxable value, tax rate and tax amount, and signature. A purchase-return debit note should add the goods received note reference, quantity returned and the reason.

Example: freight left out of the bill

A Kolkata paper trader billed a printer in Bhubaneswar ₹1,20,000 plus IGST 12% (₹14,400) on invoice KP/26-27/0331. The agreed freight of ₹4,000 was missed. The trader issues a debit note:

Freight charged by the supplier as part of the supply generally takes the rate of the main goods, which is why IGST is 12% here. The rate in this example is for illustration only; see freight and delivery charges in GST invoices.

Example: goods returned to a supplier

A Nagpur medical store returns expired stock worth ₹6,200 plus GST to its distributor. It sends a debit note listing the batch numbers and the original purchase bill. The distributor checks the goods, issues a GST credit note, and both ledgers reduce. Keep the two documents linked; the buyer's input tax credit falls when the supplier's credit note is reported.

Reporting and time limit

A supplier's debit note is reported in GSTR-1 in the month it is issued and tax is paid then. The buyer can take input tax credit on it subject to the normal conditions and time limits, which are linked to the date of the debit note. Read credit notes and debit notes in GST for the reporting side, and confirm current rules on cbic-gst.gov.in.

Common mistakes

• Raising a fresh invoice for a missed charge on an old supply, which double-counts the turnover in reports.
• Leaving out the original invoice number and date.
• Using a different tax rate from the original invoice for the same goods.
• Sending a purchase-return debit note but never following up for the supplier's credit note, so the input credit stays wrong in your books.

In Tally

TallyPrime has a Debit Note voucher used for purchase returns and for increasing a party's balance. With inventory, returned items go out of stock. Link the debit note to the purchase bill under bill-wise details so the supplier's outstanding is correct.