Section 34 of GST Act: Credit and debit notes

Amended and updated notes on section 34 of CGST Act, 2017. Detail discussion on provisions and rules related to credit and debit notes.

Amended and updated notes on section 34 of CGST Act, 2017. Detail discussion on provisions and rules related to credit and debit notes.

Chapter VII (Sections 3134) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to tax invoice, credit and debit notes. Section 34 of CGST 2017 provides for credit and debit notes.

Recently, we have discussed in detail section 33 (Amount of tax to be indicated in tax invoice and other documents) of CGST Act 2017. Today, we learn the provisions of section 34 of Central GST Act 2017 as amended by the Finance Act 2022.

Section 34 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 34 is 1-7-2017.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.VII
Chapter NameTax invoice, credit and debit notes
Section No.34
Section NameCredit and debit notes
Updated 2024 EditionGST Law Book PDF

Relevant Rules and Forms for GST Section 34:

  • Rule 53: Revised tax invoice and credit or debit notes

Section 34 of Central GST – Credit and debit notes1

Section 34 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.

Section 34(1) of CGST Act

Section 34(1): 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 one or more credit notes for supplies made in a financial year containing such particulars as may be prescribed.

Section 34(2) of CGST Act

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 [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: [Amendments (Substituted) of Section 34(2) are made by the Finance Act, 2022]

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) of CGST Act

Section 34(3): 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 one or more debit notes for supplies made in a financial year containing such particulars as may be prescribed.

Section 34(4) of CGST Act

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.

  1. Section 34 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎


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