How To cancel invoice after GSTR-1 Submission ?
As per the provisions and rule under the Goods and Services Tax Act 2017, once GSTR-1 has been filed than Invoices cannot be deleted in GSTR 1, The only one way out is that you can issue a credit note of full amount against the invoice you want to cancel. No invoice cannot be deleted and there is no provision for revising the return.
What is a credit Note?
If an invoice needs to be cancelled, a credit note works in most situations. A credit note is a legal document used to ‘pay’ the invoice so that it does not become overdue.
A credit note shows the negative value of an invoice. For example, if you have invoiced a customer for Rs 500, the invoice will have a balance of Rs 500 in order to balance the amounts in your accounting.
It also corrects the invoice number sequence. So if the invoice that needs to be cancelled is number 07, the credit note will be number 08 and the next invoice you create will be 09. It’s important to keep in mind that invoice numbers cannot be reused, even if it has been countered with a credit note.
When you create an invoice and realize that it needs to be cancelled, be aware that there are some legal restrictions involved. Technically, you should never delete an issued invoice but instead use a credit note to cancel the invoice.
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