The E-Invoicing system adds more automation and convenience to the process of filing returns while also strengthening controls against tax evasion. Take a look at the framework for amendment and cancellation of E-Invoice.
Before delving into the amendment and cancellation of an e-invoice, it is important to understand that an e-invoice is generated according to a predefined schema. Each invoice is assigned a unique Invoice Reference Number (IRN) using a hash generation algorithm. The taxpayer can generate the IRN or upload the invoice as is to the IRP, and the IRP will generate the IRN. If the IRN is produced by the taxpayer, the IRP must validate it.
IRP (Invoice Registration Portal):
The IRP (Invoice Registration Portal) is the body in charge of authenticating e-invoices. By determining if the GST E- Invoicing adheres to the specified schema and mandatory conditions, if the IRN is special, and so on. As a result, the websites of an IRP and the GST portal are distinct. When an IRP validates an e-invoice, it sends the information to the GST portal.
IRPs will process each invoice one at a time for amendments and cancellations. The IRP, on the other hand, would have a very lean and oriented framework to ensure that this phase is not slowed down due to the pressure on the servers. One of the steps that will be used to do this is that the IRP will not be able to store e-invoices for more than 24 hours. As a result, an e-invoice can only be cancelled on the IRP within 24 hours. Furthermore, since partial cancellation is not feasible, the entire invoice will have to be cancelled. Changes to an e-invoice cannot be made on the IRP.
On the GST portal, you will make changes and cancel orders.
Though cancellation on IRP is only permitted within 24 hours, modification and cancellation of GST E-Invoicing are permitted on the GST portal in accordance with GST law. This means that e-invoice modifications and cancellations will continue to be made while Form GSTR-1 is being recorded.
Options for amending or modifying an e-invoice
Cancellation of an e-invoice
In all cases where an electronic invoicing system must be modified, the only alternative is to cancel the IRN that was issued with incorrect details. Simply put, you must cancel the e-invoice that was produced with incorrect information. Later, create a new invoice with the correct information and upload it to generate a new IRN. Remember, you cannot use the same invoice amount; it must be a new number, and cancellation is permitted before 24 hours from the time the IRN is produced.
Debit and credit notes
After the time limit for cancelling an e-invoice has passed, you must use the debit or credit note to nullify the invoice details. Next, create a new invoice and a new IRN.
GST Portal Modification
The IRP cannot be modified, but appropriate adjustments to the invoice information recorded on the IRP can be made via the GST portal when filing GSTR-1. Since the IRP systems are linked to the GST framework, as soon as an e-invoice is created, the details of the invoice are auto-populated in GSTR-1, which can be changed.
The options mentioned above can be used to change the e-invoice. You can change the e-invoice information using any of the options available based on the design of the modification and the circumstance.
With the exception that e-invoices can be cancelled on the IRP within 24 hours, the scope for amendment and revocation of invoices has not changed since the implementation of the electronic invoicing systems . LogiTax makes your cancellation or amendment process easy and clear.