Amendment and Cancellation of e-Invoice

• Every e-invoice has a unique IRN, i.e. invoice reference number.
• The IRP (invoice registration portal) authenticates the e-invoices and checks if they are as per prescribed and mandatory parameters.
• Generally, instances of e-invoice cancellation arise when the buyer cancels the order or the entry is in duplicate or incorrect.

E-invoicing has streamlined and simplified the GST (Goods and Services Tax) return filing. However, there could be instances where you want to cancel or amend an e-invoice.This blog shares a step-by-step guide to cancel e-invoice and amend e-invoice. It walks you through these processes to help you manage e-invoicing confidently.

Before understanding how to cancel an e-invoice and amend an here’s a brief overview of the IRP (invoice registration portal) and some key updates. IRP The IRP authenticates the e-invoices and checks if they are as per prescribed and mandatory parameters. Every e-invoice has a unique IRN (invoice reference number), which you can either generate or upload on the IRP, and the portal will generate the number. Post-validation, the IRP sends the details to the GST portal. Latest Updates Two of the key updates relating to e-invoicing include:

• Applicability of provisions of e-invoicing with effect from 1 August 2023 where the turnover in any financial year from 2017-18 exceeds ₹5 crore.
• Deferment of the seven-day time limit on reporting old e-invoices on the IRP by three months for taxpayers with aggregate turnover of ₹100 crore or more, with the next date of implementation to be shared in due course.

Steps to Cancel An E-invoice

Generally, instances of e-invoice cancellation arise when the buyer cancels the order or the entry is in duplicate or incorrect. You can cancel an e-invoice on IRP within a stipulated time. Besides, cancellation is also allowed on the GST portal as per the provisions of GST law.Here are the steps normally followed to cancel an e-invoice.

• Step 1: To cancel an e-invoice, go to the e-invoice dashboard and browse to the ‘E-invoice’ option. Thereafter, select ‘Cancel’.
• Step 2: Mention the acknowledgement number or the IRN in the designated field and click ‘Go’. The invoice to be cancelled will be displayed on your screen.
• Step 3: Choose the cancellation reason and mention the relevant remarks before clicking the ‘Submit’ button.

Once you follow the above steps, you will see a confirmation message upon cancellation, and the said e-invoice will have the ‘cancelled’ watermark.There could be instances where you want to cancel e-invoices in bulk. During such times, you may follow the below commonly used steps to cancel an e-invoice in bulk.

• Step 1: Navigate to the ‘Help’ section on the e-Invoice portal and click ‘Bulk Generation Tools’.
• Step 2: Download ‘e-Invoice Cancel by IRN - JSON Preparation’. This is an offline utility.
• Step 3: Enter the details asked for, including IRN, reason for cancellation, and remarks.
• Step 4: Click ‘Validate’ to check for errors. Rectify these errors, if any.
• Step 5: Proceed with the preparation of JSON once the file is validated.
• Step 6: Log in again to the e-invoice portal and go to the e-invoice section.
• Step 7: Finally, click ‘Bulk IRN Cancel’ and upload the JSON file.

Steps to Amend E-invoice

To amend an e-invoice, you can edit it on the GST portal as per the relevant provisions. You must note that the e-invoice data gets auto-populated from relevant tables of the Form GSTR-1. Here is what you usually need to do to edit e-invoice in the Form GSTR-1.

• Step 1: Navigate to the ‘4A, 4B, 4C, 6B, 6C - B2B Invoices’ tiles to amend the data.
• Step 2: Go to ‘Receiver’s Details’ and select GSTIN to display the list of invoices related to a particular recipient’s GSTIN.
• Step 3: Click ‘Display/Hide Columns’ drop-down arrows and select the ‘Check All’ option. You will now view all relevant columns.
• Step 4: To amend an e-invoice, go to the ‘Actions’ column and click on the ‘Edit’ icon. The said invoice data will display on your screen.
• Step 5: You will see the ‘Edit’ button at the bottom of the page. Click on it to make the sections editable. Next, click ‘Save’ once the changes are made.
• Step 6: Confirm the changes by clicking ‘Yes’ on the pop-up window. Next, you will see a message indicating the change request has been accepted.

You can use the cancel e-invoice and amend e-invoice functionality to ensure data accuracy. However, to prevent data discrepancies in the future, ensure compliance with the relevant provisions within the stipulated time frame.Notably, you can eliminate initial discrepancies at the stage of tax calculation by using an online GST calculator.Regarding other types of discrepancies, you should ensure that your credit report displays accurate financial details. In case you notice any mistakes or errors, bring them to the notice of the respective financial institution immediately to protect your credit score. A healthy credit score vouches for your credibility and increases the chances of getting a loan with favourable terms, including competitive interest rates.