How to Cancel e-Invoice Under GST: Cancellation vs Amendment Explained (Time Limits, Rules & Practical Scenarios)
Learn when you can cancel an e-invoice, how amendment works after 24 hours, and how to stay GST-compliant without penalties.
E-Invoice Cancellation Time Limit & Amendment: Step-by-Step Guide for MSMEs
If you’re searching for how to cancel an e-invoice, chances are something has already gone wrong. Maybe the GSTIN is incorrect. Maybe the customer cancelled the order.
Or maybe you’re staring at the portal wondering why the cancel button is disabled.
Here’s the truth most guides don’t say clearly enough:
An e-invoice cancellation time is within 24 hours of IRN generation. After that, cancellation is not allowed; you can only amend the e-invoice from the e-invoice portal after that. This e-invoice cancellation guide explains:
- How e-invoicing works
- When cancellation is legally allowed
- e invoice cancellation time limit: What to do after 24 hours or even 10 days
- Amendment vs cancellation, clearly and practically
- Common MSME mistakes that trigger GST issues
What Is an e-Invoice Under GST?
An e-invoice is not a PDF or a scanned bill. It is a GST-validated invoice generated in a prescribed format and registered on the Invoice Registration Portal (IRP). Once registered, the e-invoicing process involves:
- A unique IRN (Invoice Reference Number) is generated
- A QR code is issued
- Invoice data automatically flows to GST returns and e-way bill systems
Because the invoice data moves automatically across systems, editing or deleting it freely is not permitted.
Is e-Invoicing Mandatory?
Yes, if your business crosses the GST-notified turnover threshold.If e-invoicing is mandatory for you and:
You issue invoices without IRN Or generate IRN late
Then the invoice may be treated as invalid under GST, and the buyer may lose input tax credit (ITC).
Read more: How to create e invoice
Why Do Businesses Cancel e-Invoices?
Common reasons businesses cancel their e-invoices include:
- Wrong buyer GSTIN
- Incorrect invoice value or tax rate
- Duplicate invoice created
- Sale cancelled after invoice generation
- Wrong document type selected
Cancellation is allowed only if you act quickly.
e-Invoice Cancellation Rules Under GST
Time Limit for e-Invoice Cancellation
An e-invoice can be cancelled within 24 hours of IRN generation. After 24 hours:
- The cancel option disappears from the portal
- IRN remains active
- Invoice details remain in GST system
There is no grace period beyond this window.
Who Can Cancel an e-Invoice?
Following people can cancel an e-invoice:
- The supplier who generated the IRN, or
- An authorised user with access to the e-invoice portal
- Buyers cannot cancel an e-invoice.
How to Cancel an e-Invoice on the GST Portal (Step-by-Step)
If you are within the 24-hour window:
- Log in to e-invoice portal
- Go to E-Invoice → Cancel
- Enter the IRN or Acknowledgement Number
- Select the reason for cancellation
- Submit and confirm
Once cancelled:
- The IRN is permanently invalidated
- The invoice is treated as never issued
- The same invoice number cannot be reused
More about: einvoice system
What Happens When an e-Invoice Is Cancelled?
When e-invoice cancellation is done correctly:
- Invoice will not appear in GSTR-1
- Buyer cannot claim ITC
- You must issue a fresh invoice with a new number if required
- Cancellation is completely legal within the allowed time limit.
Understanding Amendment vs Cancellation of e-Invoice
You cannot amend an e-invoice directly on the IRP.
How to Cancel an e-Invoice After 24 Hours or 10 Days?
You cannot cancel an e-invoice after 24 hours of IRN generation, so after 10 days, cancellation on the e-invoice portal is not possible. The e-invoice portal will block the cancel option.
Instead of cancelling e-invoice after 24-hour time limit, you can amend your e-invoice step-by-step -
- Amend the invoice through GSTR-1:
- You can correct certain details like taxable value, tax amount, or buyer information.
- The IRN remains the same; the invoice is not “cancelled,” just corrected in your returns.
- Issue a credit note (if the transaction is fully cancelled):
- Create a credit note against the original invoice.
- Report it in your GSTR-1.This ensures the buyer’s ITC is adjusted correctly.
- Maintain proper records:
- Keep the original invoice for audit purposes.
- Note that you cannot reuse the invoice number to generate a new IRN.
Note: Don't reuse the cancelled invoice number to generate a new IRN.
Read more:
Top 4 Amendments to an E-Invoice
After IRN generation, changes in e-invoice can be made only through GSTR-1 amendment for:
- Taxable value
- Tax amount
- Certain buyer details
- Invoice value
You cannot amend:
- IRN
- Invoice number
- Document type
If these are incorrect, cancellation within 24 hours is the only clean option.
Is It Legal to Cancel an Invoice Under GST?
Yes. GST law allows invoice cancellation, only within 24 hours as per rules with proper reporting.
E-invoice mismatch happens when:
- Invoices are cancelled outside the portal
- Returns do not match books
- Buyers claim ITC on cancelled invoices
- Compliance depends on process, not intent.
What If You Miss the e-Invoice Deadline?
If e-invoicing is mandatory for you and:
IRN is not generated Or generated late
Then:
- Invoice may be treated as invalid
- Buyer may lose ITC
- Penalties may apply during audit
- There is no official grace period once e-invoicing applies.
How to Reverse an Invoice in GST Portal?
GST does not technically allow “reversing” an invoice.
In practice, businesses reverse an invoice by:
- Cancelling the e-invoice within 24 hours, or
- Amending invoice details in GSTR-1, or
- Issuing a credit note where applicable
Read more: Latest E-invoice updates
Practical E-invoice Mistakes to Avoid
These are real issues that cause GST mismatches:
- Generating IRN before final confirmation
- Typing buyer GSTIN manually without validation
- Cancelling sale but forgetting invoice cancellation
- Creating duplicate invoices under pressure
- Assuming amendment and cancellation are the same
- Good software checks prevent most of these errors.
How GimBooks Helps You Cancel or Amend E-Invoices
GimBooks makes e-invoice amendment and cancellation easy with:
1. Automatic IRN Validation
Generating an e-invoice in GimBooks helps you check GSTIN, HSN codes, and tax calculations before IRN submission automatically. This reduces errors that often lead to cancellation requests.
2. Easy Cancellation Within 24 Hours
If you find a mistake in e-invoice within the 24-hour window, GimBooks lets you cancel the e-invoice directly from the GST e-invoicing software, making your IRN invalid and cancelling the e-invoice on time.
- Amendment After 24 Hours
If it has been more than 24 hours or even 10+ days since the e-invoice generation, GimBooks makes it easy to fix mistakes through GSTR-1 amendments by:
- Correcting the taxable value or tax amounts
- Updating buyer details
- Adjusting the invoice value
4. Credit Note Management
If the transaction is fully cancelled after 24 hours, you can issue a credit note linked to the original invoice in GimBooks. This automatically updates your GST returns, making sure ITC adjustments are smooth, accurate, and hassle-free.
5. Automated Record Keeping
In GimBooks every e-invoice or cancelled or amended invoice is stored; this helps you during audits and reconciliations without manual tracking.
6. Easy-to-use MSME Dashboard
GimBooks provides an easy-to-use and simple dashboard. Helping you manage pending e-invoice cancellations, pending e-invoice amendments, credit notes, and IRN status.
Final Thoughts: E-Invoice Cancellation vs. Amendment
You have a 24-hour window to cancel an e-invoice after it's been generated; beyond that, amendments are the only option. By following e-invoicing rules, MSMEs can avoid penalties, ensure ITC is correct, and maintain accurate, compliant GST records for their e-invoices.
FAQ on E-Invoice Cancellation and Amendment
Is it legal to cancel an invoice?
Yes, it is legal to cancel invoice under GST.
Who can cancel e-invoice?
E-invoice can be cancelled only by the supplier or authorized user who generated the IRN.
What is the time limit for GST e-invoice cancellation?
An e-invoice can be cancelled only within 24 hours of IRN generation.
What is the 7-day time limit for e-invoice?
There is no 7-day cancellation rule. The official limit is 24 hours.
How do I cancel an invoice online?
You can cancel an e-invoice online via logging in the GST e-invoice portal and cancelling e-invoice within 24 hours of IRN generation.