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.

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.