# Debit Note [Section 34]
## Why a Debit Note?
A debit note is the supplier's tool to increase the value or tax originally charged. It is the mirror image of a credit note.
## When Must a Debit Note Be Issued?
A debit note must be issued when:
1. Value declared < actual value of supply (under-billing).
2. Tax rate declared < applicable tax rate (under-charged tax).
3. Quantity received > quantity invoiced (excess delivery).
## Effect of Debit Note
- Supplier's output tax liability increases.
- Recipient may claim additional ITC on the debit note (subject to normal ITC rules).
## Time Limit to Declare Debit Note in Returns
- Debit note must be declared in the return for the month in which it is issued.
- There is NO maximum time-limit in case of debit notes.
> Why no time limit? Because a debit note increases government revenue. The 30-November cap only applies to credit notes which reduce revenue.
## Credit Note vs Debit Note (Quick Compare)
| Aspect | Credit Note | Debit Note |
|---|---|---|
| Issued by | Supplier | Supplier |
| Effect on tax liability | Reduces | Increases |
| Issued when | Over-billing / short supply / defective | Under-billing / excess supply |
| Time-limit to declare | 30 Nov following FY / annual return — earlier | No time limit |
| Condition for benefit | Recipient must reverse ITC | None (recipient gets more ITC) |