GSTN IMS: Minimize Invoice Mismatches, Improve ITC Claims

India’s Goods and Services Tax (GST) system is constantly improving, with a strong focus on increasing  transparency, and making tax compliance easier for taxpayers. One of the latest updates is the launch of the Invoice Management System (IMS) by the GST Network (GSTN) on October 14, 2024.

The Invoice Management System (IMS)is a key feature added to the GST Portal, addressing a major challenge  in GST compliance, that is the differences between supplier invoices and the buyer’s Input Tax Credit (ITC) records, which often result in incorrect ITC Claims and subsequent rejections.
Earlier, businesses had very little control over which invoices appeared in their GSTR-2B. There were often mismatches between what suppliers uploaded and what buyers recorded. This led to blocked ITC, more effort in reconciliation, and even notices from tax officers. Small and mid-sized businesses found it even harder to stay compliant without real-time invoice checks.

Now, with IMS, the GST portal gives a real-time dashboard where taxpayers can:

• Accept invoices that match their records
• Reject incorrect or duplicate invoices
• Mark invoices as pending to review them later

These actions can be taken before the invoices get added to GSTR-2B, allowing a more accurate and proactive approach to ITC claims.

Using IMS is expected to reduce invoice mismatches by nearly 20%, which will directly help businesses improve cash flow and working capital.

From a compliance and business continuity perspective, IMS delivers multiple benefits, such as

• More Transparency: You can now check and validate invoices in real-time
• Lower ITC Reversal Risk: Catch errors early and avoid wrong claims
• Better Efficiency: Makes monthly filing and reconciliation simpler
• Fewer Disputes: Reduces confusion between suppliers and buyers
• Audit-Ready Compliance: Prepares your business for future digital audits

Adoption Through Software Integration

One key enabler for faster adoption of IMS is its integration into leading accounting software platforms. For example, BUSY Accounting Software, widely used by SMEs, has already included IMS features. This allows users to manage invoices directly from the BUSY software, without any need to log in to the GST portal separately. This smooth integration makes it easier for businesses to use IMS as part of their daily routine and stay compliant.

IMS isn’t just a new feature—it’s a smart step toward better ITC management under GST. As GST rules become more tech-based and detailed, tools like IMS are no longer optional—they’re essential.

They help protect your ITC, make return filing smoother, and improve overall compliance.

As a Chartered Accountant, I can say that IMS has made it much easier for me to manage client input tax credit claims accurately and on time.

The launch of IMS is a big step in modernising India’s GST system. It allows real-time invoice checks, improves ITC accuracy, and supports the goal of a fully digital tax process.

IMS is a great opportunity to reduce risk, save time, and increase efficiency for every GST-registered business.