How to Cancel E-Way Bill

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Complete Guide How to Cancel E-Way Bill

E-way bills are an integral component for GST compliance while moving any goods in India. However, in some cases, it may be required to cancel the e-Way Bill due to wrong data entry or cancellation of the order. This article will, therefore, explain how to cancel an e-way bill or an e-invoice and lists various processes, time limits, and scenarios for cancellation. Be it integrated with the GST Portal or software like Tally Prime, this article shows you step-by-step compliance, rid you of errors.

What is an E-Way Bill?

E-Way Bill is an electronic bill generated for movement of goods crossing certain monetary limits. Some of the key details that would be included are: invoice number, recipient's GSTIN, transporter's ID and reason for moving of the goods. Cancellation may occur in case of arising errors or transport plans reschedule.

When Can You Cancel an E-Way Bill?

Cancellation is possible in following conditions.

Goods Not Being Moved
For example, in case of cancellation of order.
Mistake in Entry
Error in recipient details, invoice amount, or HSN code.
E-Way Bill Already Generated Twice
Already an E-Way Bill has been generated for the same transaction.
Order Modification
Change in order quantity or type of goods.

What is the Time Limit to Cancel an E-Way Bill?

24 Hours of Generation
The cancellation must be done within 24 hours from when the e-Way Bill is generated.
Recipient Rejection
If a recipient rejects his e-Way Bill then it becomes invalid.
24 Hours Passed
Cancellation after this time period happens with manual intervention or appeal.
Post Delivery
Once the goods are delivered and have been checked at the checking booth in case of any e-way bill cancellation is not allowed.

Step-by-Step Procedure to EWB Cancel

Cancellation via GST Portal

Sign In
Visit the e-Way Bill website.Enter your credentials.
Cancel
Navigate to the 'Cancel' option under e-Way Bill.
EWB Number
Enter the 12-digit e-Way Bill number to retrieve the document.
Reason for Cancellation
Choose from the existing list. E.g., details are incorrect, duplicate entry or order is canceled.
Add Remarks
Enter your remarks in addition to canceling.
Confirm Cancellation
Click on cancel and confirm.
Print Cancelled E-Way Bill
Go to the 'Print EWB' section, enter the number and print the cancelled document for record purposes.

How to Cancel E-Invoice in GST Portal

Steps to Cancel an E-Invoice.

Log into the GST Portal
Use your GSTIN.
Click on 'E-Invoice Cancellation'
Choose the cancel option within the e-Invoice option.
Enter Invoice Details
Input the IRN and the reason for cancellation.
Confirm and Submit
Validate the information entered and click to cancel the invoice request.

Limitations of the Cancellation Process

No Cancellation After Delivery
Once goods are delivered then no cancellation is possible.
Checkpoint Verification
Bills verified at a checkpoint are not cancellable.
System Errors
Incorrect cancellations need reconciliation with GST returns.

Penalties for Non-Compliance

Fines: ₹10,000 can be imposed for incorrect and non-cancelled documents.
Detention Goods and vehicles may be detained in case of non-compliance.
GST Audit Issues Mistakes in the e-Way Bill or e-invoice can bring up various problems in GST audits.

How Automation Assists in E-Way Bill Cancellation

Benefits of Automation.

Improved processing speed
Accuracy in record keeping
Smooth upgrading using GST APIs

Canceling an e-Way Bill or an e-invoice within time is key to compliance under GST. The correct procedure ensures smooth operation while avoiding penalties. Use automation tools such as Tally Prime or Sleek Bill for efficient e-Way Bill management, and stay updated on the latest GST rules for hassle-free compliance.