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A debit note (or supplementary invoice) is issued by a seller to a buyer increasing the amount owed. It's used when the original invoice undercharged — due to price revisions, additional services, or calculation errors. Under GST, it increases the tax liability.

A debit note increases the amount the buyer owes (seller undercharged), while a credit note decreases it (seller overcharged). Debit notes add to tax liability; credit notes reduce it. Both must reference the original invoice.

Under Indian GST, issue a debit note when: taxable value in the original invoice is less than actual, tax charged is less than actual, or additional charges need to be billed. There's no time limit for issuing debit notes under GST (unlike credit notes).

For the seller: debit note increases Accounts Receivable and Revenue/Tax Liability. For the buyer: it increases Accounts Payable and may increase Input Tax Credit. Both parties must record it in their GST returns.