Sales Returns, Credit Notes and E-Way Bills

Originally shared on 2026-09-30. This post relates to the periods and dates stated below.

Issuing a credit note does not, by itself, create an e-way-bill requirement. The key question is whether goods are physically moving.

When goods are returned by a customer and the consignment value exceeds ₹50,000, an e-way bill is generally required before movement, even though the movement is for a reason other than a fresh supply. The e-way-bill system provides “Sales Return” as a reason, with a delivery challan available as the supporting document.

Before dispatch, confirm who is causing the movement, the applicable document, return quantity, value, vehicle details and destination GSTIN. The transporter should carry the delivery challan or other applicable document together with the e-way-bill number.

Keep the credit note, return document and e-way bill properly linked in your records.

Kotla & Associates, Bengaluru, can assist with sales-return documentation and e-way-bill compliance.