GSTN Advisory: Invoice Management System (IMS) now Live on GST Portal

In a significant development for the Goods and Services Tax System, the GST Common Portal made live the Invoice Management System (IMS) to taxpayers on 14th Oct 2024. The new system shall facilitate taxpayers in matching their records/invoices vis a vis issued by their suppliers for availing the correct Input Tax Credit (ITC).

Taxpayers can make use of this system to take action on the invoices reflecting on IMS from 14th Oct 2024. The first GSTR-2B would be generated for the return period Oct’24 on 14th November, 2024 considering action taken on the Invoice Management System. It may be noted that it is not mandatory to take action on invoices in the IMS dashboard for GSTR-2B generation.

What is the Invoice Management System (IMS)?

The IMS is a new feature on the GST portal that allows recipient taxpayers to take action on invoices provided by suppliers, such as accepting, rejecting, or marking them as pending. This procedure will make it easier to reconcile ITC and guarantee that taxpayers claim the exact credit amount.

Beginning October 14, 2024, taxpayers will be able to inspect invoices uploaded by their suppliers via GSTR-1, IFF, or GSTR-1A and choose whether to accept or reject them. If the taxpayer does not take any action, the system will automatically deem these invoices to be accepted and include them in the taxpayer’s GSTR-2B, allowing for ITC claims.

IMS’s Key Features

Real-Time Invoice Management: Taxpayers can monitor and act on invoices uploaded by suppliers in real-time. The system enables firms to more efficiently handle their invoices, ensuring that no valid ITC is overlooked or erroneously claimed.

Inward and Outward Supplies: The IMS dashboard has two sections: one for managing inward supplies (supplier invoices) and another for outward supplies (customer invoices). While the outward supply part will be available soon, inward supplies can be handled at the present time.

Enhanced ITC Accuracy: The IMS allows you to evaluate invoices before they are assessed for ITC claims. Accepted invoices will contribute directly to the ITC computation in GSTR-2B, whereas rejected invoices will be removed from the ITC pool.

Deemed Acceptance: If the taxpayer takes no action, the system will automatically treat the invoices as accepted when generating GSTR-2B on the 14th of each month.

Flexibility in Recomputing GSTR-2B: Even after the draft GSTR-2B has been generated, taxpayers can continue to change their invoicing actions. If a taxpayer makes any changes after the 14th of the month, they must recalculate GSTR-2B before filing GSTR-3B.

How to Use the IMS?

• Log in to the GST portal, navigate to Services > Returns > Invoice Management System (IMS), and view the available invoices.
• View Inward supplies reported by suppliers are classified as accepted, rejected, pending, or no action taken invoices. Taxpayers can filter these records using a variety of parameters, including GSTIN and invoice date.
• Choose the invoices you want to act on. Individually or in bulk, you can accept, reject, or leave them waiting. After you’ve chosen an action, click the “Save” button to confirm your selection.
• The IMS offers taxpayers an easy Excel download option for reviewing their invoices offline.