Cancellation of tax invoice

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

One of my client using SAP systems and made a invoice by yesterday and due to some discrepancies they need to cancel the invoice in same day. The invoice and the goods have not removed from the factory. Now my clarification is whether I can cancel the invoice or pass only credit note and compensate the supply invoice. Which one is correct as per the GST. Since the customer is unaware this issue. Thanks in advance.

[Vamsi Krishna]

Since is SAP generated invoice, it is better to raise credit note and knock off both the invoices in return.

IN GSTR-1 there is an option for amendment which includes credit notes, there you can knock off.

Still we have not entered the Return filing time, lets wait for better clarity. This is for the case where your material has reached customer.

If you are not working on SAP, we can ignore the invoice from sales list which is the simpler option..

However you can manually delete the Invoice from your GSTR-1, there wont be any problem even from customer side as physical movement of goods not started yet.. This is probably suitable case for you.

[DR.MARIAPPAN GOVINDARAJAN]

Yet we have to receive clarifications in this regard.

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

Thanks for your kind response. Today I gone through the gstr-1 in that sl. No. 13, there is a cancellation provision is available. Can we mention there.

[Guest]

Yes u can..if u have raised invoice but material not despatched....then u can cancel invoice

AI Summary

Clarification on Canceling Invoice vs. Issuing Credit Note Under GST Rules When Goods Still at Factory A client using SAP systems needs to cancel an invoice issued due to discrepancies, with goods still at the factory. The query seeks clarification on whether to cancel the invoice or issue a credit note under GST regulations. One response suggests raising a credit note and adjusting both invoices in GSTR-1, especially if goods have reached the customer. If not using SAP, the invoice can be ignored from the sales list. Another response confirms that if the goods haven't been dispatched, the invoice can be canceled, and GSTR-1 provides a cancellation option for such cases.