The step-by-step process for cancellation of e-invoice
To cancel an e-Invoice on the IRP, a taxpayer must follow these steps:
Step 1: Log in to the e-Invoice portal and select “e-Invoice.” Then, click on “Cancel.”
Step 2: On the following page, choose either “Ack No.” or “IRN,” as applicable, and enter the corresponding number. Click “Go” to proceed.
Step 3: The system will display the e-Invoice and ask you to select a reason for cancellation. Click “Submit” to cancel the e-Invoice. The portal will confirm that the invoice has been successfully cancelled, and a “Cancelled” stamp will appear on the invoice.
How to cancel e-Invoices in bulk
Step 1: Visit the ‘Help’ section on the e-Invoice portal and click on ‘Bulk Generation Tools’.
Step 2: Download the offline tool named ‘e-Invoice Cancel by IRN – JSON Preparation’.
Step 3: Fill in the required details such as IRN, ‘Reason for Cancellation’, and ‘Cancel Remarks’. Click ‘Validate’ to check for any errors and correct them if needed.
Step 4: Once the file is validated, click on ‘Prepare JSON’.
Step 5: Log in again to the e-Invoice portal, go to the e-Invoice section, click on ‘Bulk IRN Cancel’, and upload the prepared JSON file.
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.
