Cancellation of invoices under GST

[Jasbir Uppal]

Dear Professionals,

My query is that under GST Tax Regime how to counter continuous cancellations of GST invoices of rental bills And service bills given to the respective parties. The reason for cancellation is non payment of invoices due to recession in market due to Covid-19.

With Warm Regards

J S Uppal

Tax Professional

[KASTURI SETHI]

First step is to revise the terms and conditions of rent deed in view of Covid-19 Cancellation of invoices is to be done within 24 hours. Since cancellation after 24 hours is not possible on IRN, one can manually cancel the same on GST portal before filing the returns.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir's view. The alternative way could be raising credit note against the original invoice.

AI Summary

Cancellation of GST invoices constrained by IRN rules; adjust contracts, use portal corrections or issue credit notes accordingly. Cancellation of GST invoices for unpaid rental and service bills should be addressed contractually and operationally: revise rent or service terms to prevent repeat cancellations; observe IRN constraints on cancellations and use permitted electronic mechanisms; if IRN cancellation is not available, adjust entries on the GST portal before filing returns or issue credit notes against the original invoices to reflect the reduction in liability.