GSTN issued FAQs on Invoice Management System

With the implementation of an Invoice Management System (IMS), taxpayers’ interactions with invoices and business processes will alter. This novel feature allows taxpayers to accept, reject, or keep invoices pending in the system to be used later as needed, expediting the reconciliation process and assuring improved accuracy and efficiency in GST compliance.

Frequently Asked Questions (FAQs) on Invoice Management System

What is an Invoice Management System (IMS)?

Invoice Management System (IMS) is a facility in the GST system, where the invoices/records saved/filed by the supplier in GSTR-1/1A/IFF, can be accepted, rejected or kept pending by recipients in order to correctly avail ITC.

How can I access IMS?

IMS can be accessed using the below path on the GST Portal: Dashboard > Services > Returns > Invoice Management System (IMS) Dashboard.

When will IMS be made available to taxpayers?

IMS will be available on the GST Portal beginning October 1, 2024, and taxpayers will be able to take action on received invoices/records starting October 14, 2024.

What all records will be available in IMS for taking an action?

All the saved or filed original invoices/records and their amendments by suppliers through GSTR1/1A/IFF will be available to the recipient for taking action in IMS. However, the documents where ITC is not eligible either due to:

i. POS rule or
ii. Section 16(4) of the CGST Act,

will not appear on IMS and will directly go to the ‘ITC Not Available’ section of GSTR-2B.

What will happen to the accepted and rejected records?

All accepted/rejected records from a specific GSTR-2B period will be withdrawn from IMS upon filing the GSTR-3B for that time. Only pending records and invoices/records for future tax periods will remain in IMS.

When will the documents be flown to IMS?

The documents will be available in IMS as soon as they are saved by the supplier in their corresponding GSTR-1/1A/IFF.

When can the recipient taxpayer take action on a record?

As soon as a supplier/ taxpayer saves an Invoice/record in GSTR-1/1A/IFF, it is shown and is available to the recipient taxpayer in IMS for taking action.

What all documents will not be made available in IMS but will be part of GSTR-2B?

Below records will not be part of IMS but will directly flow to GSTR-2B:

1. Document flowing from the following forms:

• GSTR 5
• GSTR 6

2. ICEGATE documents

3. RCM records

4. Document where ITC is ineligible due to:

• POS rules
• Section 16(4) of CGST Act

5. Documents where ITC to be reversed on account of Rule 37A.

Who will have access to IMS functionality?

Taxpayers registered as normal taxpayers (including SEZ unit/Developer) and casual taxpayers will be able to access IMS functionality.

What are the actions that I can take on an IMS ?

Below actions are allowed to take in IMS:

i. Accept
ii. Reject
iii. Pending

Note: By default all the records will flow into “No Action” category and records with “No Action” will be deemed accepted at the time of GSTR-2B generation.

Are there any invoices/records where pending action is not allowed in IMS?

Yes, for the following 4 scnearios, pending action would not be available : –

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.

Can I take actions multiple time on a document?

Yes, various actions can be made on an invoice/record before filling out GSTR 3B. If a record contains multiple actions, the most recent action will take priority over the previous one. However, the action will be frozen after the recipient files the necessary GSTR-3B.

What happens to the original record if the same record is amended by the supplier?

If the original and updated records are from different GSTR 2B return periods, it is necessary to act on the original record and file the appropriate GSTR 3B before acting on the altered record (amended through GSTR-1/1A/IFF). If the recipient takes action on the updated record first, the system will not allow them to save the action in IMS.

In case both the original records and amended records belong to same period GSTR-2B, the action taken on amended records will prevail over the action taken on original record.

What will happen to documents on which taxpayers has taken an action on IMS?

The documents will be treated in following manner based on different kind of action:

i. Accept –Accepted records will become part of ‘ITC Available’ section of respective GSTR 2B. ITC of accepted records will auto-populate in GSTR 3B.

ii. Reject –Rejected records will become part of ‘ITC Rejected’ section of respective GSTR 2B. ITC of rejected records will not auto-populate in GSTR 3B.

iii. Pending –Pending records will not become part of GSTR 2B and GSTR 3B. Such records will remain on IMS dashboard till the time same is accepted or rejected or till the time timeline prescribed in Section 16(4) of CGST Act.

iv. No Action – records with “No Action” status will be deemed accepted at the time of GSTR-2B generation.

Which documents will be considered for GSTR-2B generation?

All filed, accepted (no action will be viewed as deemed accepted), and rejected records will be considered for GSTR-2B generation as of the GSTR-2B cut-off date. Saved records, unless filed, will be considered “no action” committed and will be treated as the status of the record that existed before to saving for GSTR-2B generation.

What If I have taken an action on a document in saved status but the same is edited/changed by the supplier before filing his GSTR-1?

In case a saved record is edited before filing of GSTR-1 by the supplier, the amended record will replace the saved document in IMS and the action taken on such record by the recipient will be reset. Thus, the edited record will be available for recipient for fresh action in IMS.

Similarly, if a document is deleted by the supplier prior to filing the GSTR-1/1A/IFF, it will likewise be removed from IMS.

Will Reverse Charge document received from registered suppliers also form part of IMS ?

No, RCM invoices are not part of IMS but will continue to be part of GSTR-2B as it is being reflected today

As a taxpayer what all will I be able to view on the IMS?

The IMS has two different view:

i. Recipient view :

As a recipient, a taxpayer will have an “inward supply” view to see all the specified documents which are saved or filed by your respective supplier. These documents will be available for actions by the recipient.

ii. Supplier view:

As a supplier, a taxpayer will have an “Outward supply” view to see actions taken on all the specified documents by their respective recipient.

*It will be made available shortly.

What happens if recipient reject a record?

1. If the recipient rejects the record before filling of GSTR 1 by supplier, then the invoice/record can be edited and supplier can file the GSTR 1 with same detail. This edited record will be made available in the IMS for action by the recipient.

2. If the recipient rejects after filling of GSTR 1 by supplier, then the supplier needs to amend/add the invoice/record in GSTR-1A or in subsequent GSTR 1/ IFF with same detail. Amended record will be made available in the IMS for action by the recipient.

What will happen to the documents in IMS on filing of GSTR 3B by recipient?

All the accepted/rejected records belonging to a particular GSTR-2B period will be removed from IMS on filing of GSTR-3B for that particular period.

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