Is it correct to state that, Debit Note can be issued only for increasing tax liability by the supplier

Yes. ‘Debit note’ are akin to ‘supplementary invoice’. They are issued by the supplier for recording increase in taxable value or tax charged in the supply.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX INVOICE, CREDIT AND DEBIT NOTES: FAQ NO. 27)

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