FAQs on New Invoice Management System (IMS) in GST

What is an Invoice Management System (IMS)?

An Invoice Management System (IMS) in the GST framework allows recipients to manage invoices submitted by suppliers in their GSTR-1, GSTR-1A, or IFF filings. Using IMS, recipients can review the invoices and choose to accept, reject, or keep them pending to ensure accurate Input Tax Credit (ITC) claims. This system helps maintain transparency and ensures that only correct and validated invoices are considered for ITC claims.

How can I access IMS?

To access the Invoice Management System (IMS) on the GST Portal, follow these instructions:

1. Sign in to the GST Portal with your username and password.
2. Navigate to Dashboard.
3. Select Services.
4. Click on Returns.
5. Choose Invoice Management System (IMS) Dashboard.

This will give you access to manage and review supplier invoices for accurate Input Tax Credit (ITC) tracking.

Which records will be available in the IMS for taxpayers to take action on?

• All saved or filed original invoices/records and their amendments, submitted by suppliers through GSTR-1/1A/IFF in GST, will be available in IMS for the recipient to take action on.
• Documents where Input Tax Credit (ITC) is ineligible due to:
  • Place of Supply (POS) rule, or
  • Section 16(4) of the CGST Act,
• Such ineligible documents will not be displayed in IMS and will automatically be moved to the 'ITC Not Available' section of GSTR-2B.

What documents will be excluded from IMS but still included in GSTR-2B?

The following records will not be available in IMS but will be directly included in GSTR-2B:

1. Documents originating from:
   1. GSTR 5
   2. GSTR 6
2. ICEGATE-related documents
3. Reverse Charge Mechanism (RCM) records
4. Documents where Input Tax Credit (ITC) is ineligible due to:
   1. Place of Supply (POS) rules
   2. Section 16(4) of the CGST Act
5. Documents requiring ITC reversal under Rule 37A

Are there any invoices or records in IMS where taking pending actions is not permitted?

Yes, pending actions will not be allowed in IMS for the following four scenarios:

• Original credit notes
• Upward amendments to credit notes, regardless of the recipient's action on the original credit note in GST.
• Downward amendments to credit notes when the original credit note was declined by the recipient
• Downward amendments to invoices or debit notes if the original invoice or debit note was accepted and GSTR-3B has already been filed.

What happens to the original Tax Invoice/Debit Note when the supplier amends the same record?

If the original and amended Tax Invoice or Debit Note are from two different GSTR-2B return periods:

• Action must be taken on the original record, and file GSTR-3B before action can be taken on the amended record.
• If the recipient tries to act on the amended record first, the system will not allow the action to be saved in IMS.

What information can I access as a taxpayer on the Invoice Management System (IMS)?

The IMS offers two distinct views:

1. Recipient View: Taxpayers acting as recipients will have an "Inward Supply" view, allowing them to access all relevant documents saved or filed by their suppliers. These documents will be available for the recipient to take appropriate actions.
2. Supplier View: Taxpayers acting as suppliers will have an "Outward Supply" view, enabling them to see the actions taken by their recipients on the documents they have submitted.

What is the process when a recipient declines an invoice or record?

If the recipient rejects a record before the supplier files GSTR-1:

• The supplier can modify the invoice/record.
• The supplier files GSTR-1 with the updated details.
• The revised record will appear in IMS for the recipient to act on.

If the recipient rejects a record after the supplier files GSTR-1:

• The supplier must amend or add the invoice/record in GSTR-1A or the next GSTR-1/IFF submission.
• The amendment can include the same or updated details as needed.
• The amended record will be available in IMS for the recipient to take further action.

What is the approach for taking action on records in the IMS dashboard?

Action on Individual Record: To act on a single record, the recipient can choose the desired action by selecting the radio button at the line-item level and then click the "Save" button to confirm the action.

Action on Multiple Records: To handle multiple records simultaneously, the recipient can select several records or all records using the checkbox option on the screen. Once the records are selected, the system will display the main action buttons above the radio buttons, along with the count of records with which the recipient can then use these buttons to take action on multiple records at once a time.

What will occur if the recipient rejects a Tax Invoice or Debit Note for FY 23-24 supplies that were eligible for inclusion in the GSTR-2B of current month, considering the ITC deadline is in next month?

• Taxpayers are advised to reconcile their records before filing their GSTR-1 for the current month tax period, within the due date that is 11th of next month 2024.
• After verification, taxpayers can either accept or reject records in the IMS.
• If a record is rejected, the ITC for that individual record will not emerge in the GSTR-2B for current month 2024. However, the recipient can later change the status from rejected to accepted in IMS.
• The GSTR-2B can be recomputed, and the corresponding ITC can be claimed when filing GSTR-3B for current month 2024.

Who can benefit from utilizing IMS?

IMS helps all GST-registered businesses, specifically those with high transaction volumes, as it automates and simplifies invoice reconciliation and ITC claims.

Does IMS support bulk invoice activities?

Yes, IMS allows businesses to accept, reject, or mark numerous invoices as pending in bulk, making it easier to manage enormous volumes of transactions.

What are the key elements of IMS?

IMS delivers real-time invoice tracking, bulk actions, Excel download for offline review, and automatically considered acceptance, all sought to simplify GST compliance.

Can IMS be integrated with existing accounting approaches?

While IMS is a GST portal-based component, it can be used alongside existing accounting software by downloading invoices for offline review and bulk processing.

How does IMS enhance ITC accuracy?

IMS provides that only accepted or verified invoices are included in the ITC pool for GSTR-2B, decreasing the risk of errors, fraudulent claims, and audit disputes.