Stox N Tax

How to Cancel an E-Invoice under GST: Procedure, Time Limits & Compliance Guide

Introduction

With the rollout of e-invoicing under GST, every invoice generated by eligible taxpayers must be reported to the Invoice Registration Portal (IRP) and validated with a unique Invoice Reference Number (IRN). However, what happens if there’s a mistake or the transaction doesn’t go through?

This guide explains the procedure, rules, and limitations for cancelling an e-invoice under GST — helping businesses avoid common pitfalls and stay compliant.

1. When Can an E-Invoice Be Cancelled?

An e-invoice can be cancelled in the following cases:

  • The invoice was generated with incorrect details (e.g., wrong GSTIN, invoice amount, tax rate, or item).
  • The underlying supply was cancelled, or the order was aborted.
  • Duplicate invoice was created due to system or human error.

Note: Only full cancellation is allowed. Partial cancellations are not permitted.

2. Time Limit for E-Invoice Cancellation

The cancellation window is strictly limited:

  • Cancellation must be done within 24 hours from the time of IRN generation on the Invoice Registration Portal.
  • After 24 hours, the invoice cannot be cancelled on the IRP.
  • In such cases, the supplier must issue a credit note referencing the original invoice number to nullify or adjust the transaction.

3. How to Cancel an E-Invoice on the IRP

E-invoice cancellation can be done via:

  • GST E-Invoice Portal (manual login)
  • API integration (for ERPs with direct connectivity)
  • GSP/ASP tools (for businesses using GST Suvidha Providers)

Manual Cancellation – Step-by-Step:

  1. Login to https://einvoice1.gst.gov.in using your credentials.
  2. Go to the ‘E-Invoice’ tab and select ‘Cancel’.
  3. Enter the IRN (Invoice Reference Number) or Acknowledgement Number.
  4. Select a valid Reason for Cancellation from the dropdown.
  5. Click ‘Submit’ and confirm the request.

If successful, the system will display a confirmation message, and the e-invoice status will be updated to “Cancelled”.

4. Key Compliance Points to Remember

  • Partial cancellation is not allowed. You must cancel the full invoice.
  • Once cancelled, you cannot reuse the same invoice number in your GST records.
  • Maintain records of cancelled e-invoices for audit and reconciliation purposes.
  • Cancelled invoices must still be reported in GSTR-1 with their status marked as “Cancelled.”

5. What to Do After Cancellation?

a. If Cancellation is Done Within 24 Hours:

  • The e-invoice is considered null and void.
  • No need to issue a credit note.
  • Ensure the cancellation reflects in internal records and GSTR-1.

b. If Cancellation is Required After 24 Hours:

  • E-invoice cannot be cancelled on the portal.
  • Issue a credit note with reference to the original invoice number.
  • Report both the original invoice and the credit note in GSTR-1 for that month.

FAQs on E-Invoice Cancellation

Q1. Can I cancel an e-invoice after 24 hours?
No, you cannot cancel it on the IRP after 24 hours. You must issue a credit note instead.

Q2. Can I reuse the same invoice number after cancellation?
No. Once cancelled, the same invoice number cannot be used again for GST purposes.

Q3. Do I need to report cancelled invoices in GSTR-1?
Yes. All cancelled invoices should be reported in GSTR-1 with a cancellation status.

Q4. Can I partially cancel an e-invoice?
No. Partial cancellation is not allowed. Only full invoices can be cancelled.

Q5. What happens if I fail to cancel a wrong e-invoice within 24 hours?
You must issue a credit note to nullify or correct the error and report it in GSTR-1.

Conclusion

The e-invoice cancellation process under GST is simple but strictly time-bound. With only a 24-hour window to cancel, businesses must establish proper review and control mechanisms to catch errors quickly. After 24 hours, credit notes become the only way to correct or reverse an incorrect transaction.

For smooth GST compliance:

  • Review e-invoices immediately after generation,
  • Take timely cancellation action where necessary, and
  • Keep accurate records of all changes for reporting and audits.

Stay informed with Stox N Tax for all your GST and compliance needs.

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