Yes, you can reject an e-invoice, usually within a specific timeframe (often 72 hours in many jurisdictions like Malaysia) if it contains errors, incorrect details, or was issued mistakenly. Rejection is typically done through the official tax portal (e.g., MyInvois) or, if permitted, via Registered Electronic Mail (REM) or direct, provided you specify the reason for the rejection.
Process for Rejection or Cancellation of E-Invoices
The request must specify the reason for rejection. Upon the buyer's request, a notification is sent to the supplier for acknowledgment. If the supplier agrees with the buyer's reasoning, they can proceed to cancel the e-invoice.
Every unpaid invoice is a direct threat to cash flow and business stability. A polite reminder may work once, but persistent non-payment inevitably becomes a legal problem.
The correct way to cancel an e-invoice is to log into the GST portal, navigate to the 'e-Invoice' section, and select 'Cancel e-Invoice. ' Enter the Invoice Reference Number (IRN) of the e-invoice you wish to cancel, review the details for accuracy, and confirm the cancellation.
Whether e-invoices generated through GST system can be partially / fully cancelled? E-Invoice/IRN can't be partially cancelled. It has to be fully cancelled. The e-invoice mechanism enables invoices to be cancelled.
Therefore, an e-invoice can be cancelled on the IRP only within 24 hours. Further, the whole of the invoice would have to be cancelled since partial cancellation is not possible.
There have been various amendments to the compliance requirements related to the applicability of e-invoicing. As per the latest amendment in August 2023, all the businesses registered under the GST Act, with a total turnover exceeding Rs. 5 crores, are required to generate an e-invoice.
Rejecting an Invoice
You can reject an invoice if it contains too many errors or needs to be redone.
Post 72-Hour Adjustments
If the e-Invoice is neither rejected nor cancelled within the 72-hour period, cancellation will not be permitted afterward. Any amendments must be undertaken by issuing a new e-Invoice, such as a credit note, debit note, or refund note.
The penalty for not generating an e-invoice despite exceeding the specified turnover threshold is 100% of the tax amount or Rs 10,000 per default instance, whichever is higher.
The following are steps to take for rejecting an invoice as a customer:
No, an invoice will not usually hold up in court. An invoice is simply a request for payment, but it's not a legal document and therefore not legally binding. You may be able to legally enforce an invoice if you also have a valid contract.
Missing or Incorrect Information: No unique invoice number. No issue date or incorrect date. Missing or incorrect company name or address.
If the debtor does not pay within 21 days of receiving the demand, a creditor may then apply to the court to request bankruptcy (if an individual) or a winding up (if a company) if the debt is not paid.
Electronic Invoices & Legal Validity
Electronic documents can have the same legal force as paper invoices if they meet accessibility, integrity, and security standards.
Here are some common reasons why you may get rejected after a great interview:
The E-Invoice Applicability Limit in 2025
In 2025, the limit is ₹5 crore. That means if your aggregate turnover in any financial year since 2017-18 is ₹5 crore or more, you need to issue e-invoices for B2B transactions, exports, and certain government supplies.
Time Limit for e-Invoice Cancellation
An e-invoice can be cancelled within 24 hours of IRN generation. After 24 hours: The cancel option disappears from the portal. IRN remains active.
(vi) Adjustments to e-Invoices
No, the supplier would need to cancel the e-Invoice within 72 hours from time of validation and reissue a new e-Invoice. Any changes after 72 hours from time of validation would require the supplier to issue a new e-Invoice (i.e., debit note, credit note, refund note e-Invoice.
Invoice rejection occurs when the customer does not accept the invoice or refuses to make payment due to some problem or misstatement in the invoice. Some common reasons for invoice rejection is as follows: Error in the invoice. The quality of products or services delivered was not satisfactory.
Ignoring an invoice can lead to serious legal repercussions. If a client doesn't pay, you have the right to take steps to enforce that invoice, which may involve late fees, interest, or even legal action.
Yes, an e-invoice can be cancelled within 24 hours of its generation on the GST portal. To do so, log in to the GST e-invoice portal, navigate to the 'Cancel e-Invoice' section, and enter the Invoice Reference Number (IRN) along with a valid reason for cancellation.
One of the biggest errors businesses make in freight e-invoicing is failing to validate invoice data before submission. Without proper validation, invoices may contain errors, missing data, or mismatched charges, leading to rejections by government tax portals or payment delays from clients.
If you do not generate an e-invoice when required, you can be fined 100% of the tax amount due or ₹10,000, whichever is higher. The penalty for issuing an incorrect invoice can go up to ₹25,000 per instance. Most importantly, your customers cannot claim Input Tax Credit if your invoice does not have a valid IRN.
E-invoicing for small businesses provides a digital-first approach that eliminates manual processes, speeds up payments, and enhances compliance. This guide explores the advantages of e-invoicing, its impact on small business efficiency, and how it compares to traditional invoicing.