Can an e-invoice be cancelled partially/fully?
The
e-invoice system in India is a government initiative aimed at digitizing the
invoicing process for businesses in the country. It was introduced in 2020 as
part of the Goods and Services Tax (GST) reforms and is mandatory for companies
with an annual turnover of over Rs. 10 crores.
Under the
e-invoice system, businesses are required to generate invoices using
a standardized format that is recognized by the GST Network (GSTN). The
invoices are then uploaded to the GSTN portal, where they are validated and
assigned a unique Invoice Reference Number (IRN) and a QR code.
What is
the mechanism of e-invoice in India?
The e –
invoicing technology enhances controls against tax evasion while also
automating and simplifying the process of submitting returns. An
electronic invoice is prepared according to a set format. Each one is given a
distinct Invoice Reference Number (IRN) using a hash-generating mechanism.
The period
for e-invoice cancellation and alteration is 24 hours. When a customer cancels
an order or enters an e-invoice incorrectly or twice, the method to cancel the
e-invoice is straightforward and convenient.
Can an
e-invoice be cancelled partially/fully?
No.
E-Invoices cannot be cancelled partially. They must be fully cancelled.
What is
the cancellation period for e-invoice?
The e-invoice
method makes it possible to cancel invoices. According to the requirements of
GST law, revision and cancellation of e-invoices are permitted on the GST
portal, but cancellation on the IRP is only permitted within 24 hours.
IRN must
receive a report of this within 24 hours. On IRN, cancellations made beyond 24
hours may not be possible; however, manual cancellations of the same are
available on the GST portal prior to submitting returns.
Additionally,
the e-invoice cannot be modified in any way. While submitting GSTR-1, the only
way to make changes to the invoice details that have been posted to the IRP is
through the GST site. Nonetheless, the appropriate officer will be informed of
these changes and may ask the taxpayer for more details.
In which
case can e-invoice be cancelled?
The
following three situations allow for e-invoice cancellation-
ü Order cancellation by the buyer
ü Incorrect entry
ü Duplicate entry
The
step-by-step process for cancellation of e-invoice-
A taxpayer
must follow the below-mentioned steps in order to cancel an e-Invoice on the
IRP:
Step 1: Log in to the e-invoice portal and
choose “e-Invoice”. Click on “Cancel”.
Step 2: On the next page, choose “Ack
No.” or “IRN,” if appropriate, and type the “Ack No.” or “IRN” number. Click
“Go” to continue.
Step 3: The system will show the
electronic invoice and prompt the user to choose the cancellation reason. Click
“Submit” to reverse the e-Invoice.
The invoice
has been effectively cancelled, according to the portal. A “Cancelled” marking
will be visible on the cancelled e-Invoice.
