Easily Cancel IRN/e-Invoice in TallyPrime: 5 Steps + Example

Sometimes, you may need to cancel an e-Invoice after it’s been generated.

Maybe the party rejected the goods, there was a wrong GSTIN, or the invoice had errors.

In such cases, you can cancel the IRN (Invoice Reference Number) using TallyPrime—but only within 24 hours of IRN generation.

Let’s break down the entire process step-by-step with an example.

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1. When Can You Cancel an IRN in TallyPrime?

You can cancel an IRN in these situations:

• Invoice created by mistake
• Wrong party details or GSTIN
• Incorrect invoice amount
• Party cancels the order
• Duplicate invoice entry

1. Important Rules to Cancel an IRN:

• IRN can be cancelled within 24 hours only.
• Once cancelled, that IRN cannot be re-used.
• You need to create a new invoice and generate a fresh IRN.

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2. Example Scenario: Cancel IRN/e-Invoice in TallyPrime

Let’s say:

• Company: Shree Traders
• Location: Delhi
• Party: Ravi Electronics, Gujarat
• Invoice No: ST/1025
• IRN generated at 2:00 PM on 10th July

Now, on the same day at 5:00 PM, you realize:

• The party GSTIN was entered incorrectly.
• You need to cancel the IRN and re-issue a correct invoice.

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3. Steps to Cancel IRN in TallyPrime

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Step 1: Open e-Invoice Report

Go to:

Gateway of Tally > Display More Reports > Statutory Reports > GST > e-Invoice > e-Invoice Report

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Step 2: Go to ‘Acknowledged’ Tab

This tab shows invoices for which:

• IRN has been generated
• QR Code and Acknowledgement number are available

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Step 3: Select the Invoice to Cancel

Use the arrow keys to highlight the invoice.

Press Enter to open voucher, or simply press Spacebar to select it.

Then press:

Alt + Z > Cancel e-Invoice

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Step 4: Confirm the Cancellation

Tally will show a confirmation prompt.

Once confirmed, Tally sends the cancel request to IRP.

If successful, you’ll get a message:

“IRN cancelled successfully.”

The IRN status will now change to Cancelled.

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Step 5: Make Corrections and Recreate Invoice

Now that IRN is cancelled:

• Open the original sales voucher
• Press Alt+D to delete it (optional, or use copy)
• Create a new sales voucher
• Enter correct details (GSTIN, items, amounts)
• Generate new IRN using the same bulk or single method

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4. What Happens After Cancellation of IRN in TallyPrime?

• The invoice remains in your books, but marked as Cancelled
• You can print it with ‘Cancelled’ watermark
• You need to issue a new invoice if goods were sold
• No tax liability is attached to the cancelled IRN

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5. Important Notes to Cancel IRN/e-Invoice in TallyPrime

• IRN cannot be cancelled after 24 hours
• In that case, you need to issue a credit note to nullify the transaction
• You can then create a new invoice with the right details

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6. Quick Troubleshooting Table to Cancel IRN/e-Invoice in TallyPrime

Problem	Cause	Solution
IRN not getting cancelled	Passed 24 hours	Use credit note instead
Party GSTIN wrong	IRN already generated	Cancel and reissue
System error while cancelling	Internet issue or IRP error	Retry or check error report in Tally

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7. Summary

To cancel an IRN in TallyPrime:

1. Go to e-Invoice report
2. Select the Acknowledged invoice
3. Use Alt+Z > Cancel e-Invoice
4. Confirm and wait for success message
5. Delete or correct invoice and reissue

It’s simple, but time-sensitive.

Always verify invoice data before sending to IRP, and cancel IRNs quickly if needed.

Let me know if you want a checklist or a demo invoice template for practice.