GST & Books

Credit Notes & Returns Paperwork

Returns and refunds get proper GST paperwork — automatically.

When an order is returned, refunded, or comes back RTO, a GST-compliant credit note is issued against the original invoice — with the right tax reversal per line. Cancelled orders void their invoice but keep it on record, because GST law says issued invoices don't just disappear.

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Included on every plan GST & Books

Included with

E-commerce

How it works

What you actually do, step by step — most owners finish this from a phone.

Process the return like normal

Accept a return or mark an RTO from the order screen — stock comes back, refund is recorded.

The credit note issues itself

A credit note referencing the original invoice number is generated, reversing tax at each line's own GST rate.

Returns data stays correct

Credit notes flow into your GSTR exports, so your outward liability reduces properly in the month of the return.

Why it matters for your business

Legally correct reversals

GST law requires a credit note against the original invoice, not a deleted bill — that's exactly what you get.

Partial returns handled

Customer returned 1 of 3 items? The credit note covers just that line, at that line's rate.

No liability leakage

Without credit notes, refunded sales still sit in your GSTR-1 as taxable turnover — here they're netted off automatically.

A clean audit trail

Invoice, credit note, and refund all reference each other, so any officer or accountant can trace the full story.

What's included

The honest, complete list — limits stated where they exist.

Auto-generated credit notes for returns, refunds, and RTO orders
Each credit note references the original invoice number and date, as Rule 53 requires
Per-line tax reversal at the line's own GST rate — mixed-rate orders reverse correctly
Cancelling an order voids its invoice but keeps it on record for GST compliance
An order can't be permanently deleted while a live GST invoice exists — cancel (which issues the paperwork) comes first
Credit notes appear in GSTR-1/3B export data in the correct period
Manual credit notes available for off-order adjustments

Common questions

A customer returned half their order — what happens to the invoice?

The original invoice stands, and a credit note is issued for just the returned items, reversing that portion of the tax. Your books show both documents, which is exactly what GST law expects.

Can't I just delete the invoice when an order is cancelled?

No — and the system protects you here. An issued invoice is a legal document; deleting it creates a numbering gap that looks bad in an audit. Cancelling voids the invoice but keeps it on record, with the reversal papered properly.