When goods are returned or price adjustments occur with retail customers, accountants often look for a place to report the resulting credit notes. In Form GSTR-1, reporting depends on whether the original supply was an itemized B2C Large transaction, an export, or regular B2C retail turnover. Understanding the distinction prevents filing errors and mismatches in tax liability.
What CDNUR in GSTR-1 covers
Under Section 34 of the CGST Act, a registered supplier may issue a credit note when goods supplied are returned, when services are found deficient, or when the taxable value or tax payable exceeds the actual amount. In Form GSTR-1, outward supplies and credit notes are governed by Rule 59 of the CGST Rules.
According to the official GSTN GSTR-1 manual, Table 9B provides two separate tabs:
- CDNR: Credit and debit notes issued to registered taxpayers holding a valid GSTIN.
- CDNUR: Credit and debit notes issued to unregistered recipients.
In the official GST Returns Offline Tool, the CDNUR worksheet tab allows taxpayers to record these documents using specific supply types:
- B2CL: Inter-State supplies made to unregistered buyers where the invoice value exceeds the statutory threshold and was originally reported in Table 5.
- EXPWP: Exports of goods or services with payment of tax.
- EXPWOP: Exports of goods or services without payment of tax.
Common mistake: Attempting to enter credit notes for local retail sales under Table 9B CDNUR will result in an error or rejection on the GST portal. Small retail returns must be adjusted directly in Table 7 (B2C Others).
CDNUR versus Table 7 B2CS adjustment
The rules for reporting credit notes for unregistered purchasers depend strictly on how the original outward invoice was reported:
| Supply category | Original reporting table | Credit note reporting mechanism |
|---|---|---|
| Inter-State B2C Large | Table 5A, 5B (B2CL) | Table 9B CDNUR (invoice-wise credit note details) |
| Export supplies | Table 6A (Exports) | Table 9B CDNUR (credit note details with export type) |
| Intra-State B2C retail | Table 7 (B2C Others) | Table 7 netting (subtract from gross sales of the month) |
| Small inter-State retail | Table 7 (B2C Others) | Table 7 netting (subtract from gross sales of the state) |
For supplies reported in Table 7 B2CS, you do not issue an invoice-level credit note entry in GSTR-1. Instead, the total value of sales returns during the month is deducted from the gross taxable sales of that tax period for the same state and tax rate. To review how these outward tables link together, consult our guide on GSTR-1 meaning, tables, and how it feeds GSTR-2B.
Statutory deadlines for issuing and declaring credit notes
Under Section 34(2) of the CGST Act, any registered person issuing a credit note must declare it in the return for the month during which the credit note was issued. The final statutory deadline is the 30th day of November following the end of the financial year in which the supply was made, or the date of furnishing the annual return, whichever is earlier.
In addition, Section 34(1) mandates that no reduction in output tax liability is permitted if the incidence of tax and interest on such supply has been passed on to any other person.
Worked example: CDNUR versus B2CS credit adjustment
Consider Om Retail Enterprises based in Maharashtra. During October 2026, the firm executes two transactions involving sales returns:
- Transaction 1 (B2C Large): In August 2026, the firm supplied machinery parts valued at ₹3,00,000 plus 18% IGST (₹54,000) to an unregistered customer in Gujarat, reported in Table 5A. On 10 October 2026, goods worth ₹1,00,000 are returned. The supplier issues Credit Note CN-081 for taxable value ₹1,00,000 and IGST ₹18,000.
- Transaction 2 (B2CS Retail): During October 2026, local retail sales in Maharashtra at 18% GST total ₹5,00,000 taxable value. Retail customers return defective items with a taxable value of ₹40,000 and 18% GST (CGST ₹3,600, SGST ₹3,600).
Here is how Om Retail Enterprises calculates and reports these adjustments in Form GSTR-1:
| GSTR-1 table | Gross taxable value | Credit note adjustment | Net taxable value | Tax payable |
|---|---|---|---|---|
| Table 9B CDNUR (B2CL Gujarat 18%) | Nil | ₹1,00,000 | -₹1,00,000 | IGST: -₹18,000 |
| Table 7 B2CS (Maharashtra 18%) | ₹5,00,000 | ₹40,000 | ₹4,60,000 | CGST: ₹41,400 SGST: ₹41,400 |
The calculation for Table 7 B2CS is:
Net Taxable Value = ₹5,00,000 - ₹40,000 = ₹4,60,000.
CGST at 9% = ₹4,60,000 × 0.09 = ₹41,400.
SGST at 9% = ₹4,60,000 × 0.09 = ₹41,400.
Total tax liability on local retail sales equals ₹82,800. For the B2CL transaction, entering Credit Note CN-081 under Table 9B CDNUR reduces output IGST liability by ₹18,000 in Form GSTR-3B.
Step-by-step portal filing for Table 9B CDNUR
To file a credit note for an unregistered buyer on the GST portal, follow these navigation steps:
- Log in to the GST Portal and navigate to Services → Returns → Returns Dashboard.
- Select the relevant Financial Year and Return Filing Period, then click Search.
- In the GSTR-1 tile, click Prepare Online.
- Scroll down to tile 9B - Credit / Debit Notes (Unregistered) and click on it.
- Click Add Note Details.
- Select the UR Type from the dropdown: B2CL, EXPWP, or EXPWOP.
- Enter the Credit Note Number, Note Date, Original Note/Invoice details, Note Type (Credit), and Place of Supply.
- Enter the Taxable Value and select the appropriate GST rate. The portal computes the integrated tax automatically.
- Click Save to record the credit note.
Frequently asked questions
What is CDNUR in GSTR-1?
CDNUR stands for Credit or Debit Notes Unregistered. It is the section in GSTR-1 Table 9B where suppliers report credit notes and debit notes issued to unregistered recipients for inter-State B2C Large supplies or export supplies without payment of tax.
Where do you report credit notes for local retail B2CS supplies?
Credit notes for small intra-State or inter-State B2C supplies are not entered in Table 9B CDNUR. They must be adjusted directly as net negative sales against gross sales in Table 7 (B2C Others) for the corresponding tax rate and Place of Supply.
What is the time limit to declare a credit note in GSTR-1?
Under Section 34(2) of the CGST Act, a credit note must be declared in the return for the month during which it was issued, or up to the 30th day of November following the end of the financial year, or the date of furnishing the relevant annual return, whichever is earlier.
Check your purchase register against GSTR-2B
While outward credit notes are reported in GSTR-1, supplier credit notes must reconcile against your GSTR-2B to prevent input tax credit disputes. Your GSTR-2B and purchase register files are read in your browser and never uploaded to any server.
Last checked: 28 October 2026. Sources: CBIC Tax Information Portal (Section 34 CGST Act), GSTN GSTR-1 User Manual, GST Returns Offline Tool Guide.