What is Debit Note?
A debit note is the opposite of a credit note. You issue it when the value on an invoice you already sent was too low. Under GST, a registered supplier uses a debit note when the taxable value or tax charged in the original invoice turns out to be less than what was actually payable. The debit note references the original invoice and states the additional amount.
In practice, businesses use debit notes for small corrections, price escalations agreed after billing, or charges that were left off the original invoice by mistake.
Why it matters for exporters
On the EDF, each invoice row shows the invoice amount and net realisable value. If you later raise a debit note against an export invoice, the client may pay more than the figure you declared. That extra amount needs a clear paper trail so the bank can match the money it receives with what you reported. Whether your bank treats the debit note as part of the original row or as a fresh line on a later EDF is a bank-level question, so confirm the approach with your AD bank before you file.
For larger additional work, raising a fresh invoice is often cleaner than a debit note. Your CA can advise which is right under GST.
Example
Harbour Code Pvt Ltd bills a Dubai client AED 22,000 on 3 November 2026 for an app release. The contract allows a cost revision for a third-party SDK licence, and the client accepts an additional AED 1,800 later that month. Harbour issues debit note DN-002 referencing the original invoice. The client pays AED 23,800 in one transfer. Harbour keeps the debit note with the FIRA and its November EDF so the higher realisation is easy to explain.
Common confusion
A debit note is not a fresh tax invoice, and a credit note does the reverse job. Some buyers also issue their own "debit notes" to claim deductions from suppliers; that is a different, buyer-side usage. This is general information, not tax advice.