The Invoice Management System (IMS) is an advanced tool introduced by GSTN vide advisory on the Invoice Management System (IMS) dated: 03rd September 2024 to streamline invoice management for taxpayers. Launching on October 1st, IMS allows users to review and manage invoices from suppliers by accepting, rejecting, or keeping them pending, directly affecting the Input Tax Credit (ITC) claims. This system ensures accuracy in tax filings by verifying invoices before they appear in GSTR-2B. Invoices can be acted upon even after GSTR-2B is generated, but any action beyond the 14th of the month requires recalculating GSTR-2B. Rejected invoices are excluded from ITC claims, and amendments to invoices must be addressed promptly. IMS categorizes invoices as accepted, rejected, pending, or no action taken, influencing their treatment in GSTR-2B and GSTR-3B. For QRMP taxpayers, GSTR-2B will be generated quarterly. Certain transactions, such as inward RCM supplies and those ineligible for ITC under Section 16(4) of the CGST Act, are excluded from IMS processing. To ensure compliance, pending invoices must be resolved within statutory deadlines as per Section 16(4) of the CGST Act, 2017. Also Read: Invoice Management System – old wine in a new bottle? and New Invoice Management System (IMS) on GST Portal from Oct 2024
Q.1 What is the Invoice Management System (IMS)?
Ans. The Invoice Management System (IMS) is a new functionality developed by GSTN to help taxpayers manage and verify invoices received from suppliers. It allows taxpayers to accept, reject, or keep invoices pending, which directly impacts the Input Tax Credit (ITC) that can be claimed.
Q.2 How does IMS benefit taxpayers?
Ans. IMS allows taxpayers to verify the authenticity of invoices before they are reflected in their GSTR-2B as eligible ITC. This helps in preventing errors and ensures that only genuine invoices are claimed for ITC, enhancing the accuracy of tax filings.
Q.3 When will the IMS be available for taxpayers?
Ans. IMS will be available on the GST portal from 1st October onwards.
Q.4 How does IMS work with GSTR-1 and GSTR-3B?
Ans.
- When a supplier saves an invoice in their GSTR-1, it appears on the recipient’s IMS dashboard.
- The recipient can then accept, reject, or keep the invoice pending.
- If no action is taken, the invoice is deemed accepted when GSTR-2B is generated.
- Accepted invoices are automatically considered for ITC in GSTR-3B.
Q.5 What happens if I reject an invoice in IMS?
Ans. If an invoice is rejected in IMS, it will not be included in your GSTR-2B for ITC calculation. The supplier’s liability will be adjusted in their subsequent GSTR-3B based on the rejection.
Q.6 Can I take action on an invoice after GSTR-2B is generated?
Ans. Yes, you can still accept, reject, or keep an invoice pending after GSTR-2B is generated, but before filing GSTR-3B. If any action is taken after the 14th of the month (the usual date of GSTR-2B generation), you’ll need to recompute your GSTR-2B.
Q.7 What if the supplier amends an invoice?
Ans. If the supplier amends an invoice after you have taken action on it, the amended invoice will replace the original in IMS. You must then take action on the amended invoice, particularly if it occurs across different GSTR-2B periods.
Q.8 What are the categories of invoices in IMS?
Ans.
- No action taken: Deemed accepted when GSTR-2B is generated.
- Accepted: Included in GSTR-2B and considered for ITC.
- Rejected: Excluded from GSTR-2B.
- Pending: Not included in GSTR-2B for the current month but can be acted upon in future periods.
Q.9 What if I do not take any action on an invoice?
Ans. If no action is taken, the invoice will be deemed accepted and included in GSTR-2B as eligible ITC.
Q.10 Can I keep an invoice pending indefinitely?
Ans. No, invoices kept pending in IMS must be resolved before the statutory limits prescribed by Section 16(4) of the CGST Act, 2017.
Q.11 How does IMS handle QRMP taxpayers?
Ans. For QRMP (Quarterly Return, Monthly Payment) taxpayers, GSTR-2B will only be generated on a quarterly basis, and records/invoices filed through IFF will be processed accordingly.
Q.12 Are there any transactions excluded from IMS?
Ans. Yes, inward RCM supplies reported in Table 4B of GSTR-1/IFF and supplies ineligible for ITC under Section 16(4) of the CGST Act will not go through IMS but will be directly populated in GSTR-3B.
Q.13 How does IMS affect the generation of GSTR-2B?
Ans. IMS ensures sequential generation of GSTR-2B, meaning that GSTR-2B for a new return period will only be generated after the filing of GSTR-3B for the previous period.
Q.14 What are the actions required if an invoice is amended across different periods?
Ans. You must take action on the original invoice and file the respective GSTR-3B before acting on an amended invoice if they belong to different GSTR-2B periods. If both records belong to the same period, only the amended record will be considered.
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