Accounts Receivable | Credit Note Management

Credit notes with IRN. ITC reversal-aware. GSTR-1 register updated.

Sales returns, post-supply discounts, rate revisions and adjustments handled with GST credit notes. Each credit note carries its own IRN. ITC reversal-aware so the customer's 2B and your GSTR-1 stay aligned. Section 34 + Rule 53 compliance built in.

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How it works

From return event to credit-note posted.

Step 01

Trigger captured

Sales return, post-supply discount, rate revision or adjustment captured at the customer record. The original invoice is referenced for traceability.

Step 02

IRN raised on credit note

The credit note is a GST document with its own IRN. Authorised GSP API call returns IRN, QR and signed JSON.

Step 03

ITC reversal flagged

When the credit note reduces a B2B invoice, the customer's 2B is updated; their ITC reversal liability is flagged. The customer is notified via the portal.

Step 04

GSTR-1 register updated

The credit note posts to the GSTR-1 register and adjusts the period's outward supply. GSTR-3B output tax liability adjusts accordingly.

What the system does

Capability, input, output.

Capability	Input	Output
Credit note triggers	Sales return / discount / rate revision	Credit note draft with original invoice reference
IRN generation	Credit note + GSP	IRN, QR, signed JSON
ITC reversal flag	B2B credit note + customer GSTIN	Customer ITC reversal liability flagged
Section 34 + Rule 53	Credit note details	GSTR-1 Table 9B populated
GSTR-3B adjustment	Credit notes for the period	Output tax liability auto-reduced
Time limit check	Original invoice date + credit note date	Section 34(2) time-limit validated

Credit note triggers

Input

Sales return / discount / rate revision

Output

Credit note draft with original invoice reference
IRN generation

Input

Credit note + GSP

Output

IRN, QR, signed JSON
ITC reversal flag

Input

B2B credit note + customer GSTIN

Output

Customer ITC reversal liability flagged
Section 34 + Rule 53

Input

Credit note details

Output

GSTR-1 Table 9B populated
GSTR-3B adjustment

Input

Credit notes for the period

Output

Output tax liability auto-reduced
Time limit check

Input

Original invoice date + credit note date

Output

Section 34(2) time-limit validated

Compliance + integrations

Credit notes that respect Section 34.

Section 34 of the CGST Act sets the rules for credit notes. Time limits, ITC reversal, GSTR-1 Table 9B, GSTR-3B reduction. All applied at the credit note posting.

Regulations we work within

Section 34, CGST Act

Credit note rules and time limits applied at posting.
Rule 53

Credit note format and content validated.
Section 16(2), CGST Act

ITC reversal on the customer side flagged.

Connects to

GSTN (IRP) IRN for credit notes
Tally Prime Credit note sync
Customer portal ITC reversal notification

Credit Note Management FAQ

What buyers ask.

A sales return after the 24-hour IRN cancellation window. Credit note is the right path?

Yes. After the 24-hour IRN cancellation window, the original invoice cannot be cancelled. A credit note is the right path. The credit note carries its own IRN; the customer reverses their ITC; your GSTR-1 Table 9B captures the credit.

Section 34(2) time limit. What is it?

The credit note must be issued by 30 November of the following financial year (per Section 34(2) of CGST Act). The system flags the time-limit at credit note posting; beyond the window, the credit goes through a different (non-GST) accounting path.

Does the customer get notified of the ITC reversal?

Yes. When a B2B credit note is raised, the customer is notified via the portal (where they have access) or email. The customer's 2B is updated in the next cycle; the ITC reversal hits their books.

Post-supply discount. Is that a credit note?

Yes, where the discount is given after the original supply. Per Section 15(3) of the CGST Act, the discount is a credit note. The system handles both linked-invoice discounts (where the original invoice is referenced) and unlinked discounts (general scheme).

Related features

Raise your next credit note with IRN and 2B alignment.

Connect one entity, free. Trigger a sales return on a recent invoice. The credit note IRN raises, the customer ITC reversal flags, the GSTR-1 register updates.