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Cancellation of invoice, not pay for the service

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shobha m

articale student

127 Points Posted on 27 May 2022

hi everyone
i need the clarification of invoice cancellation.
one service oriented business, rise an e invoice, now that client not pay for the service so can we cancel the bill or can we rise the credit note now.

we already rise the e invoice so what's the effect on that, it reflects in GSTR1 can I delete that invoice in GSTR1??

Replies (5)

Quick Summary

If a client hasn't paid for a service after an e-invoice has been issued, you generally cannot cancel the invoice directly after 48 hours. Instead, you must issue a credit note against the original invoice. This process ensures accurate reporting in GSTR1, as the original invoice remains, and the credit note adjusts the liability.