Free tool · no sign-up
Credit note generator
Reduce what a customer owes, with the original invoice, the reason and the tax adjusted. Free, no sign-up, and it stays in your browser.
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How it works
- 1Click and type on the pageYour details, the party, items and terms go straight onto the A4 document.
- 2GST works itself outCGST + SGST or IGST from the two states, totals, round-off and the amount in words.
- 3Download, print or WhatsAppSave a one-page A4 PDF, print it, or send a summary on WhatsApp.
Runs in your browser. Nothing you type or upload is sent to Cashflow OS.
When a credit note is issued
The seller issues a credit note when the value or tax on an invoice turns out to be too high. The usual reasons are goods returned by the buyer, a rate charged higher than agreed, a discount given after the sale, or goods found short or defective. The credit note reduces the buyer's dues and, under GST, reduces the seller's output tax. Read credit notes and debit notes in GST.
What to fill in
- Your details and the buyer's, as on the original invoice.
- Credit note number from its own series (for example CN/26-27/009) and date.
- Original invoice number and date that this note adjusts.
- Reason: sales return, rate difference, discount, short supply, or other.
- Items and quantities being credited, with HSN and the same GST rate as the invoice.
- Print or save as PDF and send it to the buyer.
Example: a part return
You billed 50 cartons at ₹1,250 plus 18% GST within the state. The buyer returns 10 damaged cartons. The credit note shows:
- Taxable value reduced: ₹12,500
- CGST reversed: ₹1,125 and SGST reversed: ₹1,125
- Total credit: ₹14,750
The buyer's outstanding drops by ₹14,750, and the buyer must reverse the matching input tax credit.
Rules worth knowing
- Credit notes must be declared in your GST return, and there is a time limit for doing so, linked to the end of the financial year. Check the current limit on the GST portal or with your CA.
- A discount given after the sale reduces tax only if it was agreed before or at the time of supply and is linked to specific invoices. See GST on cash discounts after sale.
- One credit note can cover several invoices, but list each one.
This is general information, not tax advice.
Keeping books straight
Enter the credit note against the original bill in the party ledger, not as a loose entry, so ageing stays right. See the credit note format and sales returns under GST. Cashflow OS can create credit note vouchers in TallyPrime from the phone through the connector.
Questions people ask
Who issues a credit note, buyer or seller?
Under GST, the seller (the supplier who issued the invoice) issues the credit note.
Can I issue a credit note without the original invoice number?
You should always refer to the original invoice. GST returns ask for it, and the buyer needs it to match their records.
Is a credit note the same as a refund?
No. It reduces what the buyer owes. If the buyer has already paid, you can refund the amount or adjust it against future bills.
Does the GST rate change on a credit note?
No. Use the rate charged on the original invoice.
Can I share the credit note on WhatsApp?
Yes. Save it as a PDF and send it, or share the text summary, so the buyer can update their books the same day.
General information for Indian businesses, not tax or legal advice. GST rates and rules change by notification — check cbic-gst.gov.in or ask your CA before you rely on a figure.
