E-Invoicing in GST was introduced to simplify the communication between businesses. It is a process where the taxpayer uploads the invoice details on the Invoice Registration Portal (IRP) and obtains the Invoice Reference Number (IRN) from the IRP. To know more on e-Invoicing and its procedure, read here.
In this article, you will find:
E-Invoice can be cancelled on the IRP within 24 hours of generation of the IRN. This is mainly because the IRP servers do not store e-Invoices for more than 24 hours. However, if an e-Way Bill is already generated for the IRN, it cannot be cancelled.
Partial cancellation of e-Invoice is not possible; hence, the whole of the invoice would have to be cancelled. Moreover, any amendments of any sort cannot be done on the IRP. In case any changes are necessary for the invoice details reported on the IRP, then, it can be through the GST portal while filing GSTR-1. However, these changes will be flagged to the concerned officer, who may request further information from the taxpayer.
An e-Invoice may be cancelled for reasons like:
- Order cancellation by a buyer
- Incorrect entry
- Duplicate entry, etc.
To cancel an e-Invoice on the IRP, a taxpayer has to follow these steps:
Step 1: Log in to the e-Invoice portal and select ‘e-Invoice’ ‘Cancel’.
Step 2: The below screen will be displayed. Select ‘Ack No.’ or ‘IRN’ as applicable and enter the number. Click ‘Go’ to proceed.
Step 3: The system will display the e-Invoice and ask the user to select the reason for cancellation. To cancel the e-Invoice click ‘Submit’.
The portal will display that the invoice has been successfully cancelled. The cancelled e-Invoice will be displayed with a ‘Cancelled’ watermark.
- If an IRN is cancelled, then, the same invoice number cannot be used again to generate another IRN. If it is used again, the invoice will be rejected by the IRP, when reported. This is because, IRN is a unique reference number for individual invoices generated based on the supplier’s GSTIN, document/invoice number, type of document & financial year it is issued in.
- If an e-way bill for an IRN is active, cancellation of IRN will not be permitted by the IRP.
- In case an IRN is cancelled, then GSTR-1 will also be automatically updated with such ‘cancelled’ status.
- If an invoice has to be cancelled after 24 hours, the taxpayers can manually cancel the same on the GST portal before filing the GST returns.
- Amendments to an e-Invoice are allowed only through the GST portal as per the provisions of GST law.