Cancelled invoices, refunds and GST corrections

Cancellations happen. Clients back out, orders are returned, or an invoice is raised incorrectly. GST does allow corrections, but you need the right document trail.

If the invoice can be cancelled cleanly

If the error is caught immediately and the invoice has not really progressed, cancellation may be possible in your internal system subject to your compliance process.

If value needs to be reduced later

A credit note is the normal way to reduce invoice value and output tax, where the legal conditions are met.

Keep it connected

Always link the correction to the original invoice and make sure your books, client communication and returns tell the same story.