Debit note and credit note: The main difference between debit

The main difference between debit and credit notes is that debit notes inform buyers of ongoing debt obligations or returns, while credit notes communicate adjustments in the amount owed, reducing the outstanding balance on an invoice. In essence, a debit note increases the buyer's debt obligation. In contrast, a credit note decreases it. Both serve as important accounting documents for tracking invoice adjustments and maintaining accurate financial records between the parties involved. Learn about credit and debit notes under GST, their issuance circumstances, provisions, and impact on tax liabilities for accurate invoicing and compliance. Learn the key differences between debit notes and credit notes, two documents used in business transactions to adjust invoices or accounts. Find out when and how to issue them, and their impact on GST, accounting, and tax. Learn the difference between debit note and credit note, when and how to issue them, and their impact on GST return and tax liability. A debit note increases the tax amount and a credit note decreases it in case of changes in the original invoice.