How to Cancel e-Invoice: Explore 8 Easy Steps

Learn how to cancel e-Invoices on the GST Portal. Discover the reasons, step-by-step guide, timelines, rules, and key points for seamless cancellation.
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3 min
18 Aug 2024
E-invoice in GST is a system where businesses generate and electronically authenticate invoices through the GST portal. This ensures real-time tracking, reduces errors, and enhances transparency in transactions, simplifying tax compliance for businesses in India.

Reasons to cancel an e-invoice

  • Incorrect details: Mistakes in invoice particulars such as GSTIN, item details, or billing address can warrant cancellation.
  • Duplicate invoices: Issuing more than one invoice for the same transaction.
  • Order cancellation: If the order is cancelled by the customer or supplier.
  • Value errors: Discrepancies in the total invoice value.
  • Product returns: When goods are returned due to defects or other reasons.
  • Unclaimed invoices: GST e-invoices that are not accepted by the recipient.

How to cancel e-invoice: Step-by-step guide?

  • Login: Access the GST e-invoice portal using your credentials.
  • Navigate: Go to the 'e-Invoice' section and select 'Cancel e-Invoice'.
  • Enter IRN: Input the Invoice Reference Number (IRN) of the e-invoice you wish to cancel.
  • Reason: Provide a valid reason for the cancellation.
  • Submit: Click 'Submit' to complete the cancellation process.
  • Confirmation: Ensure that a cancellation confirmation is received. 

Timelines to cancel e-invoice

  • Within 24 hours: E-invoices can be cancelled within 24 hours of generation.
  • Post 24 hours: Cancellation is not possible after 24 hours; amendments are required.
  • Before filing GSTR-1: Ensure cancellations are done before submitting the GSTR-1 return.
  • Immediate action: Prompt action reduces discrepancies in GST records.

Rules and key points related to e-invoice cancellation

  • Mandatory IRN: Invoice Reference Number (IRN) is essential for any cancellation.
  • E-way bill: Ensure any linked e-way bill is also addressed during the cancellation process.
  • GSTR 1: Reflect cancellations accurately in the GSTR 1 return to avoid mismatches.
  • 24-hour window: Cancellations must occur within 24 hours of the e-invoice generation.

Conclusion

Understanding the rules, timelines, and steps for e-invoice cancellation is crucial for maintaining accurate GST records. Proper handling of cancellations helps avoid future discrepancies, ensuring compliance with GST regulations. Businesses must stay vigilant and act swiftly to correct any invoicing errors.

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Frequently asked questions

Is there a way to cancel an invoice?
Yes, an e-invoice can be cancelled within 24 hours of its generation on the GST portal. To do so, log in to the GST e-invoice portal, navigate to the 'Cancel e-Invoice' section, and enter the Invoice Reference Number (IRN) along with a valid reason for cancellation. Submit the details and ensure you receive a confirmation of cancellation. Note that after 24 hours, an e-invoice cannot be cancelled and must be amended instead.

How to cancel an e-invoice in tally?
To cancel an e-invoice in Tally, follow these steps:

Open Tally: Access your Tally software and navigate to the 'Gateway of Tally'.

Locate Invoice: Go to 'Display' > 'Day Book' and select the e-invoice to be cancelled.

Cancel Invoice: Press 'Alt + X' to mark the invoice as cancelled.

Update GST Portal: Ensure to cancel the corresponding e-invoice on the GST e-invoice portal as well.

Is it legal to cancel an invoice?
Yes, it is legal to cancel an invoice under certain conditions. In India, an e-invoice can be cancelled within 24 hours of its generation due to reasons such as incorrect details, duplicate entries, or order cancellations. However, once an e-invoice is cancelled, it cannot be reissued with the same Invoice Reference Number (IRN). Timely cancellation is crucial to ensure accurate GST records and compliance with regulatory requirements.

Can an e-invoice be cancelled?
Yes, an e-invoice can be cancelled, but only within 24 hours of its generation. To cancel an e-invoice, access the GST e-invoice portal, input the Invoice Reference Number (IRN), and provide a valid reason for the cancellation. After 24 hours, cancellation is not possible, and amendments must be made instead. Ensure any associated e-way bills are also addressed during the cancellation process. This ensures compliance with GST regulations and accurate record-keeping.

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