Debit Note Format under GST

Debit note format (GST compliant)

Fill this on your letterhead or generate it from your billing software. FundRaksha Book creates GST debit notes linked to the original invoice, with the first 300 invoices free.

DEBIT NOTE
(Issued under Section 34(3) of the CGST Act, 2017 read with Rule 53)

Supplier: [YOUR COMPANY NAME]
Address: [ADDRESS]
GSTIN: [YOUR GSTIN]            State: [STATE NAME]   State code: [CODE]

Debit Note No.: [DN NO. - max 16 characters, e.g. DN/25-26/014]
Debit Note Date: [DATE]

Recipient: [CUSTOMER NAME]
Address: [CUSTOMER ADDRESS]
GSTIN: [CUSTOMER GSTIN]        State: [STATE NAME]   State code: [CODE]
Place of supply: [STATE NAME AND CODE]

Against original tax invoice(s): [INVOICE NO.] dated [INVOICE DATE]

Reason for debit note: [e.g. Revision in price as per letter dated [DATE] / Short billing of quantity / Freight recoverable as per PO clause [NO.] / Interest on delayed payment]

S.No. | Description             | HSN/SAC   | Qty   | Rate (Rs.) | Taxable value (Rs.)
1     | [DESCRIPTION]           | [HSN/SAC] | [QTY] | [RATE]     | [AMOUNT]

Taxable value:                    Rs. [AMOUNT]
CGST @ [RATE]%:                   Rs. [AMOUNT]
SGST/UTGST @ [RATE]%:             Rs. [AMOUNT]
(or) IGST @ [RATE]%:              Rs. [AMOUNT]
Total amount debited:             Rs. [AMOUNT]
Amount in words: Rupees [AMOUNT IN WORDS] only

Whether tax is payable on reverse charge: [Yes / No]

Your account has been debited with the above amount. Please pay it by [DUE DATE] along with the balance outstanding.

For [YOUR COMPANY NAME]

[AUTHORISED SIGNATORY]
(Signature / digital signature)

When a supplier issues a debit note

• The agreed price was revised upwards after the invoice was issued (for example under a price-variation clause).
• Quantity supplied was more than the quantity billed.
• Tax was charged at a lower rate than applicable, or not charged on a taxable item.
• Recoverable costs such as freight, packing or loading were omitted from the invoice and are payable under the PO.
• Interest or late fee for delayed payment, which Section 15(2)(d) of the CGST Act includes in the value of supply. See the interest on late payment invoice format.

A buyer's 'debit note' for returned goods, rate differences or quality deductions is different. It is an internal commercial document telling the supplier what the buyer has deducted. For the GST effect, the supplier issues a credit note. A buyer cannot reduce the supplier's tax by its own debit note.

How to fill it

1. Use a separate series for debit notes (for example DN/25-26/001), unique for the financial year and not more than 16 characters.
2. Quote the original invoice number and date. Rule 53 allows one debit note to reference more than one invoice.
3. State the reason in one plain sentence and attach the supporting letter, PO clause or calculation.
4. Charge tax at the rate of the original supply, with the same CGST/SGST or IGST split as the invoice.
5. Report it in GSTR-1 for the month or quarter in which it is issued, and include the amount in the customer's ledger.
6. If you are covered by e-invoicing (above the notified turnover limit), report the debit note to the Invoice Registration Portal as well.

Common mistakes

• Issuing a debit note with no reference to any invoice.
• Using the debit note to bill a new supply. A new supply needs a new tax invoice.
• Treating a buyer's debit note as accepted without checking it. If you do not agree with a deduction, reply in writing at once, or the buyer will say you accepted it.
• Forgetting to show the debit note on the next statement of account, so the customer's ledger and yours never match.

How a debit note helps if the buyer does not pay

A debit note issued promptly, with the reason and the supporting document, turns an informal claim (extra freight, price escalation, interest) into a booked, reported receivable. That matters later: a claim that appears in invoices and debit notes, reported in GSTR-1 and visible to the buyer in GSTR-2B, is far harder to deny than an amount first mentioned in a legal notice. Where a buyer disputes a debit note, the dispute is at least on record early, when it can still be resolved.

If the buyer neither pays nor disputes the debit note, include it in the payment reminder and, if needed, the legal notice. FundRaksha Legal handles invoice and debit note recovery on a 30% success fee, nothing upfront.