Credit note template you can fill in online
Reviewed in November 2026
A credit note lowers what a customer owes on an invoice already sent. It names that invoice, lists what is being credited and shows the tax that goes back. The generator above opens with a sales return from an electrical distributor. Fill in the original invoice number and download the note.
Credit note
Your file never leaves your device.
What it includes
- Seller name, address, GSTIN and phone
- Credit note number and date
- Against invoice no. and invoice date
- Reason for credit
- Customer name, address and GSTIN
- Lines: description with HSN, quantity, rate, credit amount
- Taxable credit, tax credited and total credit
- Total credit in words
- Authorised signature
Credit note: full text
CREDIT NOTE
[Shakti Electricals]
[Lohar Chawl, Mumbai] · GSTIN [number] · [+91 98200 41177]
Credit note no.: [CN-2026-041]
Date: [6 November 2026]
Against invoice no.: [INV-2026-0388] dated [12 October 2026]
Reason: [Sales return, rate difference and volume scheme]
Customer:
[Om Traders]
[Station Road, Thane] · GSTIN [number]
Description Qty Rate Credit
[LED bulb 9 W, damaged in transit, HSN 8539] [40] [85.00] [3,400.00]
[Ceiling fan 1200 mm, wrong colour, HSN 8414] [3] [2,150.00] [6,450.00]
[Extension board, rate difference, HSN 8536] [50] [40.00] [2,000.00]
[Volume scheme, July to September] [1] [1,500.00] [1,500.00]
Taxable credit [13,350.00]
GST [18]% [2,403.00]
TOTAL CREDIT [₹15,753.00]
Total credit in words: [Rupees fifteen thousand seven hundred fifty-three only]
Return challan: [RC-0219]
For [Shakti Electricals]
______________________
Authorised signatoryReasons a credit note is issued
| Reason | Example line | What changes |
|---|---|---|
| Sales return | 40 LED bulbs damaged in transit | Quantity sold goes down |
| Wrong item sent | 3 fans in the wrong colour | Item returned and credited |
| Rate difference | Agreed rate ₹410, billed at ₹450 | Price per unit goes down |
| Discount after sale | Quarterly volume scheme | Total value goes down |
| Short supply | Billed 100 cartons, delivered 96 | Quantity billed goes down |
| Service shortfall | Two missed maintenance visits | Service value goes down |
Each reason goes on its own line. The customer's accounts team approves them one by one.
A credit note against an invoice worked out
Shakti Electricals billed Om Traders on invoice INV-2026-0388 dated 12 October. Om Traders returned some goods and found one rate wrong.
| Line | Qty | Rate (₹) | Credit (₹) |
|---|---|---|---|
| LED bulb 9 W, damaged in transit, HSN 8539 | 40 | 85.00 | 3,400.00 |
| Ceiling fan 1200 mm, wrong colour, HSN 8414 | 3 | 2,150.00 | 6,450.00 |
| Extension board, rate difference, HSN 8536 | 50 | 40.00 | 2,000.00 |
| Volume scheme for July to September | 1 | 1,500.00 | 1,500.00 |
The taxable credit is ₹13,350.00. GST at the invoice rate of 18% adds ₹2,403.00. The total credit is ₹15,753.00.
Om Traders now owes the invoice total less ₹15,753.00. The ledger shows the invoice and the credit note side by side.
Fields a credit note must carry
| Field | Why it matters |
|---|---|
| Credit note number | Its own series, such as CN-2026-001 |
| Date of the credit note | Sets the period the credit falls in |
| Against invoice no. and date | Ties the credit to the original sale |
| Reason for credit | Return, rate difference or discount |
| Customer name and GSTIN | Same as on the original invoice |
| Lines with HSN, qty and rate | Shows exactly what is reversed |
| Tax credited by rate | Lets the customer reverse its input tax |
| Total credit in figures and words | Removes any doubt on the amount |
The «Against invoice no.» field is the one people forget. Without it the customer cannot match the credit.
Credit note, debit note and self-billing
A credit note brings an invoice down. A debit note pushes it up when the seller billed too little.
Self-billing is different again. The buyer raises the invoice on behalf of the seller with a prior agreement.
| Document | Who issues it | Effect on the balance |
|---|---|---|
| Credit note | Seller | Customer owes less |
| Debit note | Seller, or buyer on a return | Customer owes more |
| Self-billed invoice | Buyer for the seller | Records the sale itself |
In India, credit notes under GST fall under section 34 of the CGST Act. Check the time limit with your accountant.
Settle the balance after a credit on WhatsApp
A credit note often stalls a payment. The buyer waits for it before paying the rest of the invoice.
Send the credit note and the new balance in the same message.
«Hello Mr. Shah, this is Kiran from Shakti Electricals. Credit note CN-2026-041 for ₹15,753 against invoice INV-2026-0388 is attached. The balance on that invoice is now ₹1,02,247. Please release it by 20 November.»
Follow up the morning after the agreed date if nothing arrives.
«Hi Mr. Shah, the balance of ₹1,02,247 on INV-2026-0388 was due yesterday. Could you share the UTR once it goes?»
Common credit note mistakes
- No original invoice number. The credit floats in the ledger with nothing to offset.
- Using the invoice number series. Credit notes need a series of their own.
- Tax at a different rate from the invoice. The customer's input credit stops matching.
- One lump line for many reasons. Accounts cannot approve part of it.
- Crediting goods that never came back. Ask for the return challan first.
- Editing the old invoice instead. The original stays as issued and the note corrects it.
Credit note register
Keep every credit note in one register next to the invoice register. Each row links a note to its invoice.
| Credit note | Date | Against invoice | Reason | Credit (₹) |
|---|---|---|---|---|
| CN-2026-039 | 18 October | INV-2026-0361 | Short supply | 2,124.00 |
| CN-2026-040 | 27 October | INV-2026-0374 | Volume scheme | 3,540.00 |
| CN-2026-041 | 6 November | INV-2026-0388 | Return and rate difference | 15,753.00 |
Number the notes in order without gaps. A missing number raises questions at audit time.
Reconcile the register with the customer every quarter. Both ledgers should show the same credits.
Keep the balance right after every credit
Makatea records the credit against the customer and the balance drops at once. The next reminder shows the corrected amount.
Makatea sends that reminder on WhatsApp or email before the new due date. Try it free for 14 days without a card.
Free on Makatea: proforma invoice template · rent receipt template · free invoice generator
Frequently asked questions
What is a credit invoice?
It is another name for a credit note. It reduces the amount owed on an invoice already issued.
When do I issue a credit note for a sales return?
Once the goods are back and checked. Quote the return challan and the original invoice on the note.
Does a credit note need its own number?
Yes. Keep a separate series such as CN-2026-001 so it never mixes with invoices.
Should GST go on a credit note?
Yes. Use the rate of the original invoice. Both sides then reverse the same tax.
Is this a GST e-invoice?
No. It is a commercial credit note for your own records. GST e-invoices and e-credit notes are issued on the government portal.
Can one credit note cover two invoices?
It can, but one note per invoice is cleaner. The customer matches each credit without guessing.
Your recurring collections on autopilot
Makatea sends the reminders over WhatsApp and email, records every payment and tells you who to follow up with first.
14 days free · No card
Keep reading
Debit note format under GST section 34
Fill in a debit note against a GST invoice. See when section 34 asks for one and what rule 53 says it must show.
GST invoice format and what rule 46 requires
Fill in a GST tax invoice with GSTIN, HSN, CGST, SGST or IGST. See each detail CGST rule 46 asks for and where it goes. Free PDF and Word.
Tax invoice template for wholesale and distribution
Make a tax invoice for wholesale supply with tax per line, buyer tax number and delivery note. Fill in online and download free.
Billing software that reminds your customers on WhatsApp before the due date
Looking for the best billing software? Makatea reminds customers on WhatsApp and email and records every payment. Free for 14 days with no card.