A GST-compliant debit note for supplementary billing when the original invoice amount or tax was undercharged.
A debit note is the counterpart of a credit note - it is issued when the supplier discovers that the taxable value or tax charged in the original invoice was less than what it should have been. Common scenarios include price revisions after invoice issuance, additional charges discovered post-billing, quality upgrades that increase the value, and corrections to undercharged tax rates. Under Section 34(3) of the CGST Act, unlike credit notes, there is no time limit for issuing debit notes. The debit note effectively creates additional tax liability for the supplier and additional ITC eligibility for the recipient. This template references the original invoice and clearly shows the differential amount being charged. It maintains a separate serial number series from both regular invoices and credit notes. The template includes the specific reason for the debit note, the original amounts, the revised amounts, and the additional tax payable. For businesses that frequently deal with fluctuating prices (commodities, raw materials), this template streamlines the process of issuing supplementary invoices when prices are finalised at a higher rate than originally billed.
Businesses that need to issue supplementary bills when original invoices were undercharged. Common in commodity trading (price adjustments), manufacturing (material cost revisions), construction (variation orders), and any business where prices fluctuate after initial billing.
Step 1: Enter your business details and GSTIN. Step 2: Use a unique debit note number (DN-001 series). Step 3: Reference the original invoice. Step 4: Select the reason for the additional charge. Step 5: Enter original and revised amounts. Step 6: The template calculates additional tax due. Step 7: Send to recipient for their ITC claim.
Section 34(3) of CGST Act governs debit notes. Unlike credit notes, there is NO time limit for issuing debit notes. The supplier must report the debit note in GSTR-1 for the month of issuance. The recipient can claim additional ITC based on the debit note. E-invoicing applies for businesses above Rs 5 crore turnover. The debit note increases output tax liability of the supplier.
A GST-compliant credit note template for issuing adjustments on returns, post-sale discounts, and billing errors.
A universal GST tax invoice template suitable for any registered business in India. Includes all 16 mandatory fields as per Rule 46.