Amendment and cancellation of e-Invoice 

e-invoicing has changed the way businesses manage their invoicing processes. By automating the filing and reporting of invoices, the e-Invoicing system brings many benefits. It also includes improved controls against tax evasion for tax authorities. In this blog post, we will explore more about the IRN and the process of amending and canceling e-invoices.

Functions of IRP

Firstly, IRP means Invoice Registration Portal that is responsible for authenticating e-invoices. It also ensures compliance with the prescribed format and parameters, and verifying the uniqueness of the IRN. The IRP operates separately from the GST portal, upon successful validation. It forwards the invoice details to the GST portal.

Any e-invoice is a digital invoice generated using a specific format and assigned a unique Invoice Reference Number (IRN) through a hash generation algorithm.

This process can be carried out either by the taxpayer or by uploading the invoice to the IRP. For taxpayers with an annual turnover of Rs.100 crore or more, it is mandatory to report tax invoices and credit-debit notes to the IRP. That must be done within 7 days of issuance, starting from 1st May 2023, as per the GSTN advisory. 

However, on 6th May 2023, the department decided to defer the reporting deadline by three months for old e-invoices. The new implementation date for reporting old e-Invoices is yet to be announced.

Amendment and Cancellation on the IRP

To ensure efficient processing without burdening the servers, IRPs will handle each invoice individually. This streamlined approach requires the IRP to maintain a lean system.

As a result, e-invoices will not be stored for more than 24 hours on the IRP. Consequently, any cancellation of an e-invoice can only be done within this 24-hour timeframe. It's important to note that the cancellation process applies to the entire invoice and partial cancellations are not supported. Additionally, it is not possible to make amendments to an e-invoice directly on the IRP.

Amendment and cancellation on the GST portal

According to the provisions of GST law, amendment and cancellation of e-invoices are permitted on the GST portal. While cancellation on IRP is only permitted within 24 hours. This suggests that e-invoice modifications and cancellations would continue to be made while Form GSTR-1 reporting.

Step by step process to cancel e-Invoice

Cancellation of e-invoice can be done in three cases-

1. Incorrect entry,

2. Duplicate entry, or

3. Buyer cancels the order

Keep the e-invoice handy at the time of cancellation.

Step 1: Go to the e-invoice dashboard on the
the e-Invoice portal and click on ‘Cancel’ under the ‘E-Invoice’ menu.

Step 2: Enter either the acknowledgement number or IRN in the field and click on ‘Go’ button.

The system displays the e-invoice to be cancelled.

Step 3: Select the reason for cancellation. Also, type in the remarks and click on the ‘Submit’ button.

The system will display a confirmation message upon cancellation with the e-invoice having ‘cancelled’ watermark.

There has been no change in the scope for amendment and cancellation of invoices with the introduction of the e-invoicing system with the exception that e-invoices can be cancelled within 24 hours on the IRP.

Steps to cancel e-invoices in bulk

Step 1: Go to ‘Help’ section on the e-Invoice portal. Click on the ‘Bulk Generation Tools‘.

Step 2: Download the offline utility called ‘e-Invoice Cancel by IRN – JSON Preparation’.

Step 3: Enter details in fields/cells such as IRN, ‘Reason for Cancellation’, and ‘Cancel Remarks’ and click on ‘Validate’ to check if there are any errors. Rectify the errors, if any.

Step 4: Click on Prepare JSON once the file is validated.

Step 5: Login once again to the e-Invoice portal and go to e-Invoice section. Click on ‘Bulk IRN Cancel’ and upload the JSON file.

‍Conclusion:

In conclusion, understanding the functions and processes of amending and canceling e-invoices is crucial to ensure compliance and smooth operations. While the IRP facilitates the validation and forwarding of e-invoices, amendments and cancellations can be made on the GST portal. By following the outlined steps, businesses can streamline their invoice management processes and maintain accurate records in line with GST regulations. Utilizing Swipe as a GST Suvidha Provider (GSP) on the e-invoice portal can further simplify invoicing processes, reduce errors, and save time.

Suggestions

CBIC Guidelines on GST Registration

Deferred Tax and Its Presentation in Financial Statements

Right to Information Act In India