Revised Advisory on Invoice Management System (IMS)

The Invoice Management System (IMS) is a new feature being introduced on the GST portal to help taxpayers efficiently manage and verify invoices with their suppliers, ensuring the correct Input Tax Credit (ITC) is claimed.

Key Features

• Invoice Actions:
  • Accept: Invoices accepted by the recipient will be included in their GSTR-2B and considered for ITC.
  • Reject: Rejected invoices will not be considered for ITC.
  • Pending: Invoices kept pending will not be included in the current month's GSTR-2B and can be acted upon later.
• Deemed Acceptance: If no action is taken on an invoice, it will be automatically deemed accepted at the time of GSTR-2B generation.
• IMS Dashboard: The dashboard will display all invoices reported or saved by suppliers. Recipients can take actions on these invoices from the time they are saved until they file their GSTR-3B.
• Recomputation Requirement: If an action is taken on an invoice after the 14th of the month, the recipient must recompute their GSTR-2B.
• Sequential GSTR-2B Generation: GSTR-2B will only be generated for a return period after the GSTR-3B for the previous period is filed.
• Impact of Rejection: Rejection of invoices in IMS can increase the supplier's liability in their GSTR-3B for the subsequent tax period.
• Amended Invoices: If a supplier amends an invoice before filing GSTR-1, the status of that invoice will reset on the recipient's IMS dashboard.
• Specific Scenarios: Some transactions, such as inward supplies under RCM or supplies where ITC is not eligible, will bypass IMS and go directly to GSTR-3B.

Implementation Date

This functionality will be available to taxpayers starting from October 1st.

Impact on Compliance

The IMS is designed to enhance the ITC process without adding a significant compliance burden, as records with no action taken will still be considered accepted.