Credit note format in GST: Rule 53 fields and layout
When you can issue a credit note, what it must show, the deadline for reporting it and a layout you can follow.
Last updated 21 October 2026
What is a credit note in GST?
A GST credit note is issued by a supplier to reduce the value or tax of an earlier invoice: after an overcharge, a return of goods, deficient goods or services, or a qualifying discount. Section 34 of the CGST Act allows it, Rule 53(1A) lists its fields, and it must be reported by 30 November after the financial year.
When can you issue a credit note under GST?
Section 34 of the CGST Act lets a registered supplier issue a credit note in four cases:
| Reason | Example |
|---|---|
| The invoice overstated the taxable value or tax | Billed ₹1,20,000 instead of the agreed ₹1,00,000 |
| Goods were returned by the recipient | 20 of 200 cartons sent back as damaged |
| Goods or services were deficient | A maintenance visit was only partly carried out |
| A discount allowed under Section 15(3)(b) was given after supply | A volume discount agreed in the contract and linked to specific invoices |
The supplier’s tax liability goes down only if the recipient has reversed the input tax credit attributable to the note, or, for unregistered buyers, the tax was not passed on to anyone else.
What does a GST credit note look like?
Credit note
Supplier
[Business name]
[Address, state]
GSTIN: [15-character GSTIN]
Credit note
Credit note no.: [e.g. CN/26-27/0007]
Date: [DD-MM-YYYY]
Against invoice: [No. and date]
Reason: [Return / Rate difference / …]
Recipient
[Name]
[Address]
GSTIN / UIN: [if registered; state name and code if not]
| Description | HSN/SAC | Qty | Taxable value credited | GST % | CGST | SGST | IGST |
|---|---|---|---|---|---|---|---|
| [Item returned] | [Code] | [20] | [₹] | [18] | [₹] | [₹] | [₹ or —] |
For [Business name] — Authorised signatory
Which fields does Rule 53 require?
| Clause | Particular |
|---|---|
| (a) | Supplier’s name, address and GSTIN |
| (b) | Nature of the document (credit note or debit note) |
| (c) | Consecutive serial number, up to 16 characters, unique for the financial year |
| (d) | Date of issue |
| (e) | Recipient’s name, address and GSTIN or UIN, if registered |
| (f) | For an unregistered recipient: name, address, delivery address, state name and code |
| (g) | Serial numbers and dates of the corresponding tax invoices or bills of supply |
| (h) | Taxable value, rate of tax and the amount of tax credited or debited |
| (i) | Signature or digital signature of the supplier or authorised representative |
Source: CGST Rule 53(1A). Keep the credit note’s tax rate the same as the original invoice’s, even if the rate for that item has changed since, because the note corrects the original supply.
In software, a credit note should be raised from the original invoice rather than typed fresh, so the invoice reference, rates and HSN codes carry over and stock comes back in for returns. That is the approach ERPStack is being built around; see GST billing software.
This page is general guidance, not tax or legal advice. Rules were checked on 21 October 2026.
Credit notes, answered
What is the time limit for issuing a GST credit note?
Under Section 34(2), a credit note must be declared in the return for the month it is issued, and no later than 30 November following the end of the financial year in which the supply was made, or the date you file the annual return, whichever is earlier.
Can one credit note cover several invoices?
Yes. Section 34 allows one or more credit notes for supplies made in a financial year, and Rule 53(1A)(g) refers to the serial numbers and dates of the corresponding invoice or invoices, so a single credit note can list several.
What is the difference between a credit note and a debit note?
A credit note reduces the value or tax of an earlier invoice, for example after a return or an overcharge. A debit note increases it, for example when the invoice understated the value or tax. Both follow the same Rule 53(1A) particulars and, if you are in the e-invoicing system, both need an IRN.
Credit notes that link back to the invoice automatically
ERPStack is being built to raise credit notes from the original invoice, so returns, stock and GST stay in step. Sign up to follow the build.
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