Issue a credit note against an invoice
Open the issued invoice, click Credit note and choose Sales return, Rate difference or Discount after sale. Enter the returned quantities or the reduction, then click Save and issue. GST is reversed at the invoice's rates and the credit is set against that invoice.
In EaseDesk: Sales → invoice → Credit note. Log in or start a free trial.
Steps
- 1 Open Sales and the issued tax invoice or bill of supply you need to correct.
- 2 Click Credit note and choose the reason, Sales return, Rate difference or Discount after sale.
- 3 For a return, enter the quantities coming back on each line. For a rate difference or discount, enter the reduction per unit in the rate column.
- 4 Check the totals. The credit note shows which invoice it is against, and GST is reversed at that invoice's rates.
- 5 Click Save and issue. The credit note gets its own number in the credit note series.
- 6 Click Email or PDF to send it to the customer.
What happens when you issue
The credit note is posted as the reverse of the sale, including the output CGST and SGST or IGST, and the customer owes you less. It is set against the invoice it was made from, so the invoice shows as partly or fully settled. You can find every credit note on the Credit notes tab under Sales and in the Credit notes register report.
GST returns and e-invoice
Credit notes issued within the time limit are reported in your GSTR-1 for the month they are issued, as credit notes to registered or unregistered buyers. If e-invoicing is on for your GSTIN, a credit note to a registered customer needs its own IRN, just like an invoice, and waits in E-invoices to register until you bring it back from the portal. Financial credit notes, issued after the time limit, are left out of GSTR-1 because they do not change your tax.
Returns at the counter
A bill made at the counter is corrected with Return on the counter screen instead. It is also saved as a credit note against the bill. See Bill customers at the counter.
Who can do it
Creating and issuing credit notes needs the credit note permission. The Owner, Admins and Accountants have it.
Questions
Should I cancel the invoice or issue a credit note?
Cancel when the sale did not happen and the invoice was issued by mistake, before its GSTR-1 is filed. Issue a credit note when goods come back, the price changes after the sale, or the period's GSTR-1 is already marked filed, because the invoice can then change only by a credit note.
Is there a time limit for reducing GST with a credit note?
Yes. The law allows a credit note to reduce GST until 30 November after the end of the invoice's financial year, or until you file that year's annual return if that is earlier. After 30 November, EaseDesk issues a financial credit note that reduces the amount owed but not the GST.
Does a sales return put the goods back in stock?
Yes. Only a sales return brings goods back into stock. Rate differences and discounts change the value only.
Can I credit more than the invoice?
No. EaseDesk limits returns to the quantities still on the invoice and value to each line's taxable amount.
Still stuck? WhatsApp or call +91 91525 20552 or write to support@easedesk.com. Updated 28-09-2026.