Itc on credit notes

If you've issued a credit note as a supplier, you can reduce your output tax liability by adjusting the original invoice amount and tax in your GSTR-3B. You must also report the credit note separately in the Credit Note/Debit Note section of your GSTR-1. If you've received a credit note for services procured, this reduces your eligible Input Tax Credit (ITC), so you'll need to decrease the ITC claimed on the original invoice.