IRN Cancellation: All About E-invoice Cancellation in Detail

IRN Cancellation is possible if it is done within 24 hours of submitting the invoice. In this blog, let us explore how to cancel IRN or the Invoice Reference Number that is already generated for an invoice on the Invoice Registration Portal (IRP).

In October 2020, the Government of India introduced the e-invoice mandate. Currently, the e-invoicing mandate requires all companies with an AATO of over Rs. 10 crores in a financial year to generate e-invoices under GST. They must register their invoices with an IRP like IRIS IRP.   

So, what is an IRN? How is it related to the IRP? And what is the process of IRN cancellation? Let us discuss here...  

What is IRN? 

According to the e-invoice mandate, organizations with an AATO of over 10 crores of turnover must register their invoices with the IRP. Once the invoice is uploaded on the portal, the government assigns a unique number to the invoice. This number is called the Invoice Reference Number, or the IRN. 

According to the e-invoice mandate, organizations with an AATO of over 10 crores of turnover must register their invoices with the IRP. Once the invoice is uploaded on the portal, the government assigns a unique number to the invoice. This number is called the Invoice Reference Number, or the IRN. 

An e-invoice under GST, once uploaded on the IRP, is stored on the portal for 24 hours. So, if you wish to cancel your IRN, you must do it within 24 hours. But, why would a business need to cancel their e-invoice? 

Reasons for IRN Cancellation

Cancellation of IRN can be needed for several reasons. Primarily, businesses cancel their IRN for the following reasons. 

1. Buyer cancels the order  
2. There are mistakes in the e-invoice  
3. Incorrect entries  
4. Duplicate entries   

However, before you cancel IRN, there are a few things you must consider. Mentioning them below: 

• If a business, for some reason, fails to adhere to the timeline of cancelling an IRN within 24 hours, then the supplier must issue a debit or credit note. Otherwise, the supplier must edit the Form GSTR-1 and alter the corresponding details of e-invoice.  
• Furthermore, let’s say the e-way bill is already generated with respect to a particular IRN. It is, then, not possible to cancel that particular IRN. In such cases first need to cancel the E-way bill if possible and then only cancelation of IRN will be allowed. 
• If a business meets the conditions and cancels the IRN, then another IRN cannot be generated for the same invoice number.  
• It is also not possible to partially cancel an IRN.

Along with IRN Generation, IRIS IRP also helps you with IRN Cancellation when required

IRIS IRP is a government-recognized Invoice Registration Portal. To foster the spread and adoption of e-invoicing, the government has recently announced private IRPs in addition to the government portal. Private IRPs are also authorized to issue an Invoice Registration Number (IRN). 

IRIS IRP offers a stable and secure connection for taxpayers and solution providers to generate IRN for their e-invoices. Furthermore, you can also integrate your ERPs via API Integration. We have multiple interfaces for your convenience - web, app or excel utility.  

In addition to this, you can leverage state-of-the-art AI and ML solutions around invoice data for your CFOs to streamline their AP and AR cycles and manage better cash-flows. Let IRIS IRP take care of the e-invoicing under GST, so you can focus better on bringing in more invoicing opportunities.