When you need one
A credit note is required whenever the value or tax on an original invoice needs to reduce — a sales return, a post-sale discount, or a billing error found after the invoice was issued. A debit note does the reverse, increasing what was billed.
Both must reference the original invoice number and carry their own GST treatment, adjusting your output tax liability for the period they are issued in.
The deadline that catches people out
Credit notes for a financial year must be declared by a fixed deadline the following year — after that, the tax adjustment can no longer be claimed. Confirm the current deadline against the latest GST rules, since it is tied to annual return timelines that can shift.
Because LedgrBook links every credit note to its source invoice automatically, none fall through the cracks of that deadline.
LedgrBook handles this automatically. The parts of this guide your bills already know.
See how →General information, not professional tax advice — confirm specifics with your CA.
