GST credit notes: the 30 November cut-off, when you can issue one and what the buyer must do

Last updated 22 Oct 2026 · India

Short answer. Under section 34 of the CGST Act a supplier may issue a credit note when the taxable value or tax charged was too high, goods are returned, or services are found deficient. To reduce your output tax, the credit note must be declared in a return filed not later than 30 November following the end of the financial year of the supply, or the date of filing the annual return, whichever is earlier. For FY 2025-26 supplies that is 30 November 2026. No reduction is allowed if the tax burden has been passed on to another person.

When a credit note is allowed

Taxable value or tax in the invoice exceeds what is payable
Goods returned by the buyer
Services found deficient

Deadline for FY 2025-26 supplies

Event	Effect
Credit note declared in a return filed by 30 Nov 2026	Output tax can be reduced
GSTR-9 filed earlier	Deadline ends on that date
After the deadline	Commercial credit note only; no GST reduction

Buyer's side

A GST credit note reported by the supplier reduces the buyer's eligible ITC; the buyer reverses the matching ITC. Reconcile credit notes in GSTR-2B every month.

Common mistakes

Year-end discount credit notes in December for last year's supplies: too late for GST.
Credit note without reference to the original invoice.
Filing GSTR-9 early before all credit notes for the year are declared.
Buyer not reversing ITC on credit notes received.

Checklist

Pending returns, rate disputes and price revisions listed for FY 2025-26
Credit notes issued and reported in GSTR-1 by 30 Nov 2026
GSTR-9 filed only after that review

Frequently asked questions

What is the last date to issue a GST credit note for FY 2025-26?

To reduce output tax, it must be declared in a return filed by 30 November 2026, or the annual return date if earlier (section 34(2), CGST Act).

Can I issue a credit note after 30 November?

You can issue a commercial (financial) credit note, but the GST already paid cannot be reduced through it.

When can a GST credit note be issued?

When the value or tax charged is too high, goods are returned, or services are deficient.

Does the buyer need to reverse ITC on a credit note?

Yes, the buyer's ITC is reduced to the extent of the tax in the credit note.

Official sources

Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 22 Oct 2026.

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