Section 34 - Credit and debit notes of CGST ACT, 2017

        34. (1) Where a tax invoice has 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 containing such particulars as may be prescribed.

           (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 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.
         (3) Where a tax invoice has 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 containing such particulars
as may be prescribed.
        (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.