How to Cancel an E-Invoice under GST?

The e-invoicing system was implemented in India with an aim to automate and control tax evasion. But what if you issue a wrong e-invoice? You might face different consequences such as a fall in your compliance rating. So, keeping this in mind we have tried to cover all the aspects of how you can cancel an e-invoice under GST!

Possible Reasons to Cancel an E-Invoice 

There can be different reasons due to which a taxpayer can cancel an e-invoice, so we have listed the most common reasons:

1. When the recipient cancels the item or order. 

2. Wrong or duplicate data-entry in an e-invoice 

3. Mistakes due to human error in an e-invoice 

To tackle such scenarios, the taxpayer has the power to cancel an e-invoice. 

Cancellation of an E-Invoice on the IRP System 

Invoice Registration Portal (IRP) processes invoices one by one and the data of such e-invoices on the IRP system stays not for more than 24 hours. Therefore, if you want to cancel an e-invoice on the IRP system, you need to do it within 24 hours. Moreover, it shall be noted that you cannot cancel an e-invoice partially, you need to cancel the whole e-invoice on the IRP. 

Cancellation of an E-Invoice on the GST Portal 

As we already know that you can cancel an e-invoice on the IRP within 24 hours, but you can cancel an e-invoice on the GST portal as per the GST provision. This means you can cancel an e-invoice on the GST portal any time before filing GSTR-1. 

Important Points to Note 

1. You can cancel an e-invoice within 24 hours from the time it was generated on the IRP. 

2. In case if the above time limit exceeds you can issue a Credit note or debit note (CDN) to nullify the invoice data 

3. You can any time cancel an e-invoice on the GST Portal before filing GSTR-1. 

4. An e-invoice cannot be canceled once an e-way bill is generated for the same. 

13. You need to cancel the whole e-invoice, no partial cancellation of e-invoice is permissible. 

6. Once you cancel an e-invoice on the IRP or GST portal, you cannot use the same invoice number in the future to generate IRN or signed QR code. 

How Can GSTrobo® Help You?  

GSTrobo® a division of Binary Semantics Ltd. is a one-stop GST compliance software providing industry-leading GST, e-way bill, and e-invoicing software. These solutions not only seamlessly integrate with all the ERPs but also automates most of your GST process. So, choose GSTrobo® to stay GST compliant.