Section 34 – Credit and Debit Notes
Section 34 of CGST Act, 2017 – Credit Notes and Debit Notes Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Importance of Section 34 Section 34 provides the statutory mechanism to rectify errors or changes discovered after issuance of tax invoice by issuing credit notes or debit notes . This section is crucial for: Post-supply discounts Excess tax charged Short supply or excess supply Revision of taxable value or tax rate 2. Credit Note – Section 34(1) A registered person may issue a credit note where: Taxable value or tax charged exceeds the actual value or tax payable Goods are returned by the recipient Goods or services supplied are found to be deficient Credit note reduces: Taxable value, and GST liability Important condition: Credit note must be declared in the return. 3. Debit Note – Section 34(3) A registered person shall issue a debit note where: T...