Howtocancelaninvoice
The instinct is to delete it and pretend it never happened. That is the option that causes the problem you will be asked about later.
5 minute read · Updated
Short answer
An invoice can be cancelled outright only before it has been acted on — before it is reported in a return and before the recipient has claimed credit against it. After that, the correct instrument is a credit note referencing the original invoice number, not a cancellation. In either case, never delete or reuse the number: retain it and mark it cancelled, because a GST invoice series must be consecutive and a missing number reads as a suppressed invoice.
Which route applies
| Situation | Do this |
|---|---|
| Raised minutes ago, not sent | Cancel it. Keep the number, mark it cancelled. |
| Sent, but not reported or claimed | Cancel and reissue, keeping the cancelled number in the series. |
| Reported in a return | Credit note against the original. |
| Recipient has claimed credit | Credit note. The cancellation option has gone. |
| Wrong amount, everything else right | Credit note for the difference, or a debit note if you undercharged. |
Never delete the number
A GST invoice series must be consecutive and unique for the financial year. A gap is visible to anyone who looks, and from the outside a missing number looks like an invoice somebody would rather not discuss.
So retain it. Keep a cancelled invoice on file, marked cancelled, with a one-line note of why. It costs nothing now and it answers a question later without you having to remember anything.
Reusing a cancelled number for different work is worse than a gap. You then have two documents that have carried the same number, which is precisely what the uniqueness requirement exists to prevent.
If e-invoicing applies to you
Where the invoice has been registered with the Invoice Registration Portal and carries an IRN, cancellation is a portal action with its own short time window, and after that window the only route is a credit note.
That window is significantly shorter than most people expect, so an e-invoice raised in error is a same-day problem rather than an end-of-month one. Check the current window before you rely on it.
The reference
Credit note and debit note format
When to issue a credit note versus a debit note, what each must reference, and the deadline after which a credit note can no longer reduce your tax.
Make one now
Free, no sign-up, and nothing you type leaves your browser.
Questions people ask
You can cancel it, but never delete the number. A GST invoice series must be consecutive and unique for the financial year, so a missing number is visible and reads as a suppressed invoice. Retain the cancelled document, mark it cancelled, and note why.
Read next
How to show a discount on an invoice
Line-level versus invoice-level discounts, why the order matters for tax, and the discount that has to be agreed before the supply to count.
Numbering invoices across clients and branches
When to run one series and when several are allowed, how to keep them consecutive, and what to do when invoices come from two systems.
Nine invoice mistakes that delay payment
The specific, fixable errors that stop an invoice being approved — from a missing PO number to a rupee sign that did not render in the PDF.