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how do we set story points to 0 after story is cancelled or rejected
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If you are doing Scrum, I would recommend not doing this for issues that have been added into the current sprint, because it will distort your reporting. For things cancelled before the sprint they are in starts, or things in the backlog, it's fine to 0 the estimate.
I would set up an automation or script that catches the issue being transitioned to "done", have it look at the status or resolution and set the story points to 0 (if it's not in an active sprint).
(I say "Status or resolution" because people work in different ways - some people have "cancelled" as a status in their workflows, others have a more simple "closed for some reason" and use a resolution of "cancelled" to tell people why it was closed)
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