A Detailed Guide on e-invoice Partial/Full Cancellation

The current Goods and Services Tax norms have provisions for GST invoice cancellation rules. However, there are certain guidelines that you need to follow while cancelling the same. Knowing the rules can help you with seamless e-invoice cancellation.

This blog elaborates on the GST invoice cancellation rules for your convenience. Further, it answers if you can revoke it and the time frame to cancel it. This blog further highlights the process of single and bulk invoice cancellation for your knowledge.

What Is the Mechanism of e-invoice in India?

The e-invoice system acts as a control against tax evasion. It ensures automation and simplification of the process of filing returns. A specific format followed in e-invoicing provides a distinct Invoice Reference Number (IRN) using a hash generation algorithm.

You can cancel and alter an e-invoice within 24 hours. If you have entered e-invoice details incorrectly or twice, you can conveniently cancel the e-invoice. Beyond 24 hours, you have two options to correct the invoice information. You can either issue a debit or credit note to cancel the original invoice or amend the details in Form GSTR-1 to update the invoice information.

Can an e-invoice Be Cancelled Partially/Fully?

One cannot consider partial cancellation or conduct the e-invoice cancellation process partially. If you need to cancel, you have to fully cancel the e-invoice.

Must reads

Navigating the 180-Day ITC Reversal in GST

• 14 Aug 24
• 18 mins

ITC Claims on Credit Fraud

• 27 Aug 24
• 14 mins

What Is the Cancellation Period for e-invoice?

Cancellation of B2B transaction-based invoices can be done within 24 hours on the e-invoice IRP portal (Invoice Registration Portal). However, before submitting GST returns you can consider manual cancellation on the GST portal. Further, you cannot modify an e-invoice. You can only make changes while filing Form GSTR-1 on the GST portal. In case there is an active e-way bill, one can proceed with IRN cancellation on the IRP portal. 

In Which Case Can the e-invoice Be Cancelled?

Here are the situations when you can cancel an e-invoice:

• Order cancellation by the buyer
• e-invoice incorrect entry
• e-invoice duplicate entry

e-Invoice Cancellation in GST Portal

The process to cancel an e-invoice varies based on the type of invoice. A single cancelled e-invoice procedure is different from that of the bulk cancellation of invoices. Let us find out how:

Single Invoice Cancellation

Follow the steps below to cancel single invoices:

Step 1: Visit the e-invoice portal, log in with your user credentials and navigate to the 'Cancel' option on the e-invoice dashboard.

Step 2: Fill in the IRN or the ‘Acknowledgement Number’ and click ‘Go’.

Step 3: Select e-invoice, enter the ‘Cancellation Reason’ and click on ‘Submit’.

Bulk Invoice Cancellation

Here is the procedure to cancel bulk e-invoices:

Step 1: Visit the e-invoice portal and go to ‘Help’, then ‘Tools’.

Step 2: Choose ‘Bulk Generation Tool’.

Step 3: You can now download the e-invoice Cancel by IRN - JSON Preparation Offline utility.

Step 4: Fill in the IRN, a valid reason for cancellation and cancellation remarks and click on 'validate'.

Step 5: Click on ‘Prepare JSON’.

Step 6: Re-log in, navigate to the e-invoice section, click on ‘Bulk IRN Cancel’ and upload the JSON file that you downloaded.

Must reads

Complete Guide to types of audit under GST

• 29 Aug 24
• 13 mins

Indirect Tax: Meaning, Types of Indirect Tax Before GST

• 26 Aug 24
• 11 mins

Conclusion

The GST invoice cancellation rules mandate the cancellation of e-invoices within 24 hours if necessary. Remember that you cannot consider the revocation of e-invoices once cancelled. Furthermore, an e-invoice once created cannot be deleted.

You can identify each e-invoice with a unique IRN number which cannot be duplicated. Hence you cannot create two e-invoices with the same IRN as per the e-invoice rules. 

💡If you want to pay your GST with Credit Card, then download Pice Business Payment App. Pice is the one stop app for paying all your business expenses.

FAQs