Debit Notes — What They Are and How to Use Them

What is a Debit Note?

A Debit Note is a document you raise against a supplier's invoice to increase the amount payable, or to formally communicate a discrepancy. It is the purchase-side equivalent of a credit note on the sales side.

When to Raise a Debit Note

• Supplier under-billed you (wrong rate or missing items)
• You received additional goods not on the original invoice
• Price revision agreed after the invoice was issued
• Returning goods to the supplier (your debit = their credit)

Debit Note vs Credit Note

How to Create a Debit Note in BillYantra

1. Go to Purchase → Debit Notes in the sidebar.
2. Click + New Debit Note.
3. Select the original purchase invoice you are adjusting.
4. Add the additional items or price difference.
5. GST is calculated automatically.
6. Click Save.

Impact on ITC

A debit note increases the GST you can claim as ITC. BillYantra includes debit notes in your GSTR-3B ITC calculation automatically.

Note: The supplier should issue a corresponding credit note from their side for the GST reconciliation to match in GSTR-2B.