How to Cancel an E-Invoice: Step-by-Step Process

How to cancel e-invoices in the GST portal?

Cancelling an e-invoice in the GST portal is a straightforward process, but it must be done within a specific timeframe. To begin, the taxpayer must log into the GST portal using their credentials. Once logged in, they should navigate to the 'e-Invoice' section, where they will find the option to 'Cancel e-Invoice.' After selecting this option, the taxpayer needs to enter the Invoice Reference Number (IRN) of the e-invoice they wish to cancel. Upon submission, the system will prompt for confirmation of the cancellation. It is crucial to double-check all details before proceeding, as once an e-invoice is cancelled, it cannot be reversed. This process ensures that the e-invoice is legally invalidated in the GST system, helping taxpayers manage their invoicing records accurately. Timely cancellation is essential to avoid any potential compliance issues.

The step-by-step process for cancellation of e-invoice

• Log in to the GST portal: Access the GST portal using your login credentials.

• Navigate to the 'e-Invoice' section: Once logged in, go to the 'e-Invoice' section in the portal.

• Select 'Cancel e-Invoice': Click on the option to cancel the e-invoice.

• Enter the Invoice Reference Number (IRN): Provide the IRN of the e-invoice you intend to cancel.

• Review the details: Verify the e-invoice details to ensure accuracy before proceeding.

• Confirm cancellation: After verifying, confirm the cancellation by following the on-screen prompts.

• Receive confirmation: The system will provide a confirmation message once the e-invoice is successfully cancelled.

• Record the cancellation: Keep a record of the cancellation confirmation for future reference.

Reasons to cancel an e-invoice

• Error in invoice details: Inaccuracies in invoice data, such as incorrect amounts, dates, or recipient details, are common reasons for cancellation.

• Duplicate invoice: If the same invoice has been generated more than once, one of them needs to be cancelled.

• Changes in supply: If the terms of the supply change after the invoice is issued, necessitating significant alterations, the original e-invoice may need to be cancelled.

• Supply not made: In cases where the supply of goods or services does not occur as planned, the related e-invoice should be cancelled.

• Customer rejection: If the customer rejects the goods or services, the issued e-invoice might need cancellation to reflect the transaction accurately.

What is the cancellation period for e-invoice?

The cancellation period for an e-invoice is strictly limited to 24 hours from the time of its generation. This means that the taxpayer must ensure that any necessary cancellations are completed within this window. Once the 24-hour period elapses, the e-invoice cannot be cancelled through the GST portal. This stringent timeframe underscores the importance of accuracy and promptness in handling e-invoices. If an e-invoice needs to be rectified or cancelled after this period, the taxpayer must take alternative steps, such as issuing a credit note to rectify any discrepancies. The 24-hour limit ensures that the integrity of the GST system is maintained and that transactions are recorded promptly and accurately.

Can an e-invoice be cancelled partially/fully?

An e-invoice can only be cancelled in its entirety; partial cancellations are not permitted under the GST system. This means that if there is an error or a need to amend only part of the invoice, the entire e-invoice must be cancelled, and a new one issued if necessary. The restriction against partial cancellation is designed to maintain clarity and accuracy within the GST e-invoice system, ensuring that each invoice fully reflects the transaction it documents. Therefore, taxpayers must be diligent in reviewing their e-invoices before finalising them to avoid the need for full cancellation.

Conclusion

Cancelling an e-invoice on the GST portal is an important process to manage business compliance efficiently. Following the correct steps ensures accurate records and avoids potential issues. Businesses must act promptly within the 24-hour window to cancel any erroneous or duplicate e-invoices. For smooth financial management amidst such tasks, consider Bajaj Finserv Business Loan. It offers quick funding with flexible repayment options, allowing you to focus on your business needs, such as managing GST compliance or expanding operations, without any financial strain. Apply today to secure your business's future with hassle-free financing.