The Goods and Services Tax Network ( GSTN ) launched a new functionality called the Invoice Management System ( IMS ) with effect from October 1, 2024. This new feature will allow taxpayers to efficiently manage and correct invoices through the GST portal, ensuring accuracy in their Input Tax Credit ( ITC ) claims.
The IMS will enable recipient taxpayers to review invoices issued by their suppliers and take actions such as accepting, rejecting, or keeping them pending for future consideration.
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The invoices reflect in the IMS dashboard. The recipient can accept or reject an invoice or can simply keep it pending in the system. These actions can be taken from the time of saving the records in GSTR-1 / IFF / 1A by the supplier taxpayer till the recipient taxpayer files his/her corresponding GSTR-3B.
If the recipient doesnât take any action on an invoice in IMS then it will be deemed accepted and will move to GSTR-2B as an accepted invoice. In case, the supplier amends the details of a saved invoices in the GSTR-1 before filling the GSTR-1, in such cases the amended invoice will replace the original invoice in IMS, irrespective of the action taken by the recipient on the original invoice.
Invoices that have been amended by the supplier through GSTR-1A will also reflect in the IMS. However, ITC related to these invoices will only appear in the GSTR-2B for the subsequent month. Pending invoices can be dealt with in future tax periods, provided they do not exceed the time limits specified by Section 16(4) of the CGST Act, 2017.
1. No action taken: These are the invoices/records where no action has been taken by the recipient these will be treated as deemed accepted at the time of GSTR-2B generation;
2. Accepted: There are the accepted records and will be part of GSTR-2B generation;
3. Rejected: These records will not be considered for GSTR-2B generation;
4. Pending: These records will not be considered for GSTR-2B generation for the month, the same will be carried forward in IMS itself for further action in subsequent months.
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This functionality is a facilitation for the taxpayers and will not add any compliance burden on the taxpayers as No Action records shall be considered as Deemed Accepted and the taxpayerâs intervention will only be required in case a record needs to be Rejected or kept Pending.
For taxpayers under the Quarterly Return Monthly Payment (QRMP) scheme, the IMS will integrate with their existing processes. Records saved or filed through IFF by a QRMP taxpayer will flow to the recipient’s IMS and become part of GSTR-2B, depending on the recipient’s actions. The GSTR-2B for QRMP taxpayers will be generated quarterly, aligning with their filing schedule.
1. Accept âAccepted records will become part of âITC Availableâ section of respective GSTR 2B. GST on accepted records will auto-populate in GSTR 3B as eligible ITC.
2. Reject âRejected records will become part of âITC Rejectedâ section of respective GSTR 2B. ITC of rejected records will not auto-populate in GSTR 3B.
3. Pending âPending records will not become part of GSTR 2B and GSTR 3B. Such records will remain on the IMS dashboard till the time the same is accepted or rejected. âPendingâ action shall not be allowed in following scenarios:
a. Original Credit note
b. Upward amendment of the credit note irrespective of the action taken by the recipient on the original credit note
c. Downward amendment of the credit-note if original credit note was rejected by recipient,
d. Downward amendment of Invoice/ Debit note where original Invoice/ Debit note was accepted by recipient and respective GSTR 3B has also been filed.
1. Deemed accepted: At the time of GSTR 2B generation, a record will be considered as âDeemed Acceptedâ if no action is taken on that record in IMS.
2. It is mandatory to recompute GSTR 2B from IMS dashboard in case of any change in action already taken on concerned records or any action is taken after 14th of the month i.e. date of generation of Draft GSTR-2B.
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3. Following supplies will not go to IMS and will be directly populated in the GSTR 3B –
a. Inward RCM supplies where the supplier has reported in the Table 4B of IFF / GSTR 1 or GSTR 1A and
b. supplies where ITC is not eligible due to section 16(4) of CGST Act or on account of POS rule.
4. Records will flow to IMS dashboard at the time of saving of record by supplier in respective form and recipient can take action on such record in IMS. However, such records will be populated in the GSTR 2B after filling of return in GSTR-1/IFF/1A by the supplier.
5. All the accepted/ deemed accepted/ rejected records will move out of IMS dashboard after filing of respective GSTR 3B.
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6. Pending records will remain on the IMS dashboard and these records can be accepted or rejected in future months.
7. It is mandatory to take action on the original record and file the respective GSTR 3B before taking action on the amended record (amended through GSTR-1A/GSTR-1) when original and amended record belong to 2 different GSTR 2B return period. If both the records belong to the same periodâs 2B, only the amended record will be considered for ITC calculation of GSTR 2B.
8. Any change made in a record/invoice before filing GSTR-1/1A/IFF by the supplier will reset the recordâs status on the recipient’s IMS dashboard.
9. GSTR 2B will be sequential now. i.e. system will generate GSTR 2B of a return period only if GSTR 3B of previous return period is filed.
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10. The liability of suppliers will be increased in GSTR 3B for the subsequent tax period, for the invoices/records which have been rejected by the recipient in the IMS for the following transactions
a. Original Credit note rejected by the recipient
b. Upward amendment of the credit note rejected by the recipient irrespective of the action taken by recipient on the original credit note
c. Downward amendment of the credit note rejected by the recipient if original credit note was rejected by him,
d. Downward amendment of Invoice/ Debit note rejected by the recipient where original Invoice/ Debit note was accepted by him and respective GSTR 3B has also been filed.
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