Section 34 of CGST Act

Credit and Debit Notes

Enforced with effect from 1-7-2017.

See rule 53 of the CGST Rules, 2017.

Section 34(1)

Where a tax invoice has Where one or more tax invoices have been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply,

or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient,

the registered person,

who has supplied such goods or services or both,

may issue to the recipient a credit note one or more credit notes for supplies made in a financial year containing such particulars as may be prescribed.

{Substituted for "where a tax invoice has" by the Central Goods and Services Tax (Amendment) Act, 2018, w.e.f. 1-2-2019.}

{Substituted for "a credit note" by the Central Goods and Services Tax (Amendment) Act, 2018, w.e.f. 1-2-2019.}

Section 34(2)

Any registered person who issues a credit note in relation to a     supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than September the thirtieth day of November following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed:

Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person.

Section 34(3)

Where a tax invoice has Where one or more tax invoices have been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient “a debit note” one or more debit notes for supplies made in a financial year containing such particulars as may be prescribed.

• Substituted for "Where a tax invoice has" by the Central Goods and Services Tax (Amendment) Act, 2018, w.e.f. 1-2-2019.
•  
• Substituted for "a debit note", by the Central Goods and Services Tax (Amendment), Act, 2018, w.e.f. 1-2-2019.

Section 34(4)

Any registered person who issues a debit note in relation to a supply of goods or services or both shall declare the details of such debit note in the return for the month during which such debit note has been issued and the tax liability shall be adjusted in such manner as may be prescribed.

Explanation. -  

For the purposes of this Act, the expression ― debit note shall include a supplementary invoice.