Credit Note Calculator
Work out the tax reduction when you issue a credit note against a sale.
Or enter the agreed percentage being returned / under-billed.
Enter the original taxable value and adjustment percentage to compute the note.
How the calculation works
A credit note walks back part of a supplied invoice — reducing both taxable value and the tax reported for it, keeping your returns consistent with reality.
- Adjustment
Original taxable value × Credit % ÷ 100 - Revised taxable value
Original − Adjustment - Tax reduced
Adjustment × Rate ÷ 100
Worked example
Goods worth ₹50,000 were invoiced at 18%; half came back. The credit note covers 50%.
You enter
You get
Important points to keep in mind
- Credit notes go in GSTR-1 Table 9B and must reference the original invoice number.
- They must be issued before 30th November following the end of the financial year of supply (or annual-return date, whichever is earlier).
- Buyers must reverse proportionate ITC when accepting a credit note.
Frequently asked questions
When is a credit note required?
When goods come back, services are found deficient, the price is renegotiated downward, or an invoice overstated value/rate/tax.
Does a credit note give the customer money back?
It reduces their payable balance or creates refund due — commercial settlement follows your agreed terms.
Can I issue a credit note against an advance receipt?
Credit notes reference tax invoices. For cancelled advances, adjust in the next return's advance table instead.
Related GST tools
Prepare your returns in GSTSelf
Done estimating? Prepare the actual return.
GSTSelf walks you through your invoices, builds GSTR-1 and GSTR-3B data, and keeps everything on your device — no uploads, no account.