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Debit notes & credit notes in GST

Returns, discounts, price corrections — these are handled with credit and debit notes, not by editing old invoices. Here's how.

By the Launch My Office team · Updated 2026-06-22 · 5 min read

Once a tax invoice is issued, you don't quietly edit it. You adjust with a credit note (to reduce) or a debit note (to increase). For e-commerce, returns and price changes make these routine.

When to use each

E-commerce scenarios

High return rates in apparel and footwear mean lots of credit notes — reconcile them against marketplace settlement reports and your MTR data so your returns match.

Never just delete or rewrite a filed invoice. Use a credit/debit note so the audit trail stays intact and your GSTR-1 reconciles.

In your returns

Report credit and debit notes in the relevant tables of GSTR-1; they adjust your output tax accordingly.

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Frequently asked questions

When do I issue a credit note in GST?

For returns, post-sale discounts, overcharges or downward price revisions — always referencing the original invoice.

Can I just edit an old invoice instead?

No. Use a credit or debit note so the audit trail and returns stay consistent.

How do returns affect GST?

Returns are handled via credit notes, which reduce your output tax — reconcile them against marketplace reports.

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