The GST Network (GSTN) has issued an advisory announcing several key updates to the Invoice Management System (IMS). These changes aim to simplify the GST compliance process for taxpayers. One major update allows taxpayers to keep specific records pending for one tax period (either a month or a quarter, depending on their filing cycle). This applies to records such as credit notes and downward amendments of invoices/debit notes.
Another significant change clarifies the rules for Input Tax Credit (ITC) reduction. The new system now allows taxpayers to declare the exact amount of ITC they’ve availed and need to reverse. This provides flexibility, enabling partial reversals or a declaration of no reversal if the ITC was never claimed. This facility will be available for the same specified records that can be kept pending. Additionally, taxpayers can now save remarks when rejecting or pending a record, which will be visible in their GSTR-2B and to their suppliers for future reference and corrective action. These changes are effective from the October tax period, and all taxpayers are advised to review them before filing.
Goods and Services Tax
Government of India, States and Union Territories
Advisory: New Changes in Invoice Management System (IMS)
Sep 23rd, 2025
This is to bring to your notice that several new changes have been introduced in the Invoice Management System (IMS) to simplify the taxation system and reduce the compliance burden on the taxpayers. The following are the key updates
Pending action for specified records: Taxpayers can keep specified records pending for a limited time period. For monthly taxpayers, this period is one tax period (months), for quarterly taxpayers also it is one tax period (quarter) only. The specified records which can be kept pending in the system are mentioned below
a. Credit notes, or upward amendment of Credit note
b. Downward amendment of CN where original CN rejected
c. Downward amendment of Invoice / DN only where original Invoice already accepted and 3B has been filed
d. ECO-Document downward amendment only where original accepted, and 3B has been filed
Declaring ITC reduction amount:
It is clarified that, in cases where the recipient has not availed Input Tax Credit (ITC) in respect of the relevant invoice or document, no reversal of ITC shall be warranted. Further, in cases where ITC has been availed only partially, the obligation to reverse ITC shall be limited to the extent of such availment.
Therefore, In IMS a facility has been made available to taxpayers to declare the amount of ITC actually availed and, to the extent applicable, required to be reversed in respect of the selected record. The said facility permits reversal of ITC, either in full or in part, by entering the amount availed to be reversed. This facility may also be utilized in cases where the taxpayer has already effected such reversal, either wholly or partially, at an earlier point of time, or where the ITC pertaining to the relevant invoice or document was never availed. Such facility is provided for the afore-mentioned specified records.
Option to save remarks: Taxpayers can now save remarks while taking reject or pending action on records. This optional facility allows taxpayers to add remarks (will be rolled out shortly). Such remarks will be visible in GSTR-2B for future reference and to suppliers in the Outward Supplies view dashboard, to take corrective measures.
Important Dates:
The changes of keeping credit notes pending and declaring the ITC amount, as mentioned above shall be made effective on the portal from October tax period.
Due date for keeping records pending: The due date for keeping records pending is calculated based on the date/ tax period in which such documents has been communicated by the supplier.
Prospective Application:
The new changes will be available only for records filed by suppliers after the production rollout of these changes. Taxpayers are advised to carefully review these changes before taking action and filing their returns.
Thanking You,
Team GSTN
