The Invoice Management System (IMS) introduced by GSTN is a transformative tool in the GST framework designed to streamline invoice handling and enhance taxpayer compliance. This document explains the system’s functionalities, implications, and user guidelines in detail, along with an extensive FAQ section.
Introduction and Purpose
The IMS aims to:
- Allow recipient taxpayers to accept, reject, or keep invoices pending.
- Facilitate invoice reconciliation to ensure accurate Input Tax Credit (ITC) claims.
- Reduce errors in GSTR-2B and GSTR-3B filings, saving time and improving accuracy.
- Enhance communication between suppliers and recipients regarding invoice actions.
Key Functionalities
1. Invoice Actions
- Accept: Marks the invoice as valid for ITC claims.
- Reject: Invalidates the invoice for ITC claims.
- Pending: Allows deferring the action to future periods.
2. Deemed Acceptance
- Invoices not acted upon are considered “deemed accepted” and included in the recipient’s GSTR-2B.
3. Dynamic Updates
- Supplier amendments to invoices in GSTR-1/IFF reflect immediately in IMS.
- Amendments replace original invoices in real time, resetting previous actions.
4. Dashboard Access
- The IMS dashboard displays all inward invoices saved/issued by suppliers.
- Includes features like filtering, searching, bulk actions, and Excel download options.
5. GSTR-2B Integration
- Actions taken on invoices in IMS directly affect ITC availability in GSTR-2B.
- Rejected or pending invoices are excluded from ITC for the filing period.
Impact on ITC and GSTR Filings
1. GSTR-2B and GSTR-3B
- Draft GSTR-2B is generated on the 14th of each month.
- Accepted and deemed accepted invoices contribute to ITC.
- Actions can be modified until the corresponding GSTR-3B is filed.
2. Sequential GSTR-2B Generation
- GSTR-2B for the next period is generated only after filing GSTR-3B for the current period.
3. Recomputing GSTR-2B
- Taxpayers must recompute GSTR-2B if actions on IMS invoices are modified after the draft generation.
Handling Special Scenarios
1. Pending Status Restrictions
- Pending status cannot be assigned to:
- Original credit notes.
- Upward amendments of credit notes or invoices.
- Downward amendments of credit notes where the original was rejected.
2. Amendments and Rejections
- Actions on amended invoices/credit notes are valid only after completing actions on the original.
- Rejected credit notes increase supplier liability in subsequent GSTR-3B filings.
3. QRMP Taxpayers
- Quarterly taxpayers generate GSTR-2B quarterly, incorporating all actions in IMS for the quarter.
User Guidance
1. Accessing IMS
- Navigate to Dashboard > Services > Returns > Invoice Management System (IMS).
2. Taking Actions on Invoices
- Individual Actions: Select Accept/Reject/Pending for a single invoice and save.
- Bulk Actions: Select multiple invoices using checkboxes and apply actions.
3. Exporting Data
- Use the Excel download feature to review invoices offline.
4. Recomputing ITC
- Click on “Recompute GSTR-2B” after modifying actions on IMS to update ITC details.
FAQs on IMS
General Functionality
Q1. What is an Invoice Management System (IMS)?
IMS is a GST system feature that enables recipient taxpayers to accept, reject, or keep invoices pending for availing correct ITC.
Q2. How can I access IMS?
IMS can be accessed via Dashboard > Services > Returns > Invoice Management System (IMS).
Q3. When will IMS be made available to taxpayers?
IMS will be available from October 1, 2024, with full functionality to take actions starting October 14, 2024.
Q4. What records will be available in IMS for action?
All original invoices and amendments saved/filed in GSTR-1/1A/IFF by suppliers will be available. However, ineligible ITC records (POS rule, Section 16(4)) will directly appear in the “ITC Not Available” section of GSTR-2B.
Q5. What will happen to accepted and rejected records?
Accepted and rejected records will be removed from IMS after filing GSTR-3B for that period. Only pending records and future-period invoices will remain.
Q6. When will documents be available in IMS?
Documents will appear in IMS as soon as they are saved by suppliers in their GSTR-1/IFF.
Q7. What documents are not part of IMS but included in GSTR-2B?
Documents directly included in GSTR-2B are:
- Records from GSTR-5, GSTR-6, and ICEGATE.
- RCM records.
- ITC-ineligible documents (POS rule, Section 16(4)).
- Records requiring ITC reversal (Rule 37A).
Q8. Who has access to IMS?
IMS is accessible to normal taxpayers (including SEZ units/developers) and casual taxpayers.
Actions on IMS
Q9. What actions can be taken in IMS?
Allowed actions are:
- Accept: Include the record in ITC.
- Reject: Exclude from ITC.
- Pending: Defer the action.
Records with “No Action” status are deemed accepted at GSTR-2B generation.
Q10. Are there invoices/records where pending action is not allowed?
Yes, pending is not allowed for:
- Original credit notes.
- Upward amendments of credit notes.
- Downward amendments of credit notes rejected by the recipient.
- Downward amendments of invoices where the original was accepted, and GSTR-3B was filed.
Q11. Can actions be taken multiple times on a document?
Yes, actions can be taken multiple times before filing GSTR-3B. The latest action overwrites previous ones.
Q12. What happens to original tax invoices if amended by the supplier?
If amendments occur:
- Actions on the original record reset if the original and amended records belong to different GSTR-2B periods.
- For the same GSTR-2B period, actions on the amended record prevail.
Q13. What happens to original credit notes if amended?
Amended credit note actions prevail over actions on the original, whether they belong to the same or different GSTR-2B periods.
Handling Rejections and ITC Impact
Q14. What happens to records acted upon in IMS?
- Accept: Included in ITC for GSTR-2B and auto-populates in GSTR-3B.
- Reject: Excluded from ITC for GSTR-2B and GSTR-3B.
- Pending: Not included in GSTR-2B or GSTR-3B until acted upon.
Q15. Which documents are considered for GSTR-2B generation?
Filed and accepted (or deemed accepted) records are included in GSTR-2B. Rejected and pending records are excluded.
Q16. What happens if an invoice acted upon in IMS is edited by the supplier?
Edited records replace original records in IMS, and recipient actions are reset. Deleted records are removed from IMS.
Q17. Will reverse charge documents appear in IMS?
No, RCM invoices are not part of IMS but continue to populate GSTR-2B.
Q18. How are rejected invoices from FY 2023-24 handled with ITC deadlines?
Rejected invoices can be accepted again in IMS, and ITC can be recalculated before filing GSTR-3B for October 2024.
Draft and Recomputed GSTR-2B
Q19. What is the draft GSTR-2B?
Draft GSTR-2B is generated on the 14th of each month, reflecting actions in IMS. Rejected records are excluded from ITC.
Q20. Can actions be taken after the draft GSTR-2B generation?
Yes, actions can be taken until filing GSTR-3B, requiring recomputation of GSTR-2B.
Q21. When is draft GSTR-2B not generated?
Draft GSTR-2B is not generated if the previous period’s GSTR-3B is not filed.
Q22. How often can GSTR-2B be recomputed?
GSTR-2B can be recomputed multiple times before filing GSTR-3B.
Quarterly Taxpayers (QRMP)
Q23. How does IMS work for QRMP taxpayers?
GSTR-2B for quarterly taxpayers combines actions from all three months (M1, M2, M3) and is generated quarterly.
Q24. When is GSTR-2BQ generated for QRMP taxpayers?
GSTR-2BQ is generated on the 14th of the month following the quarter (e.g., for Q3, GSTR-2BQ is generated on January 14).
Special Scenarios
Q25. What happens if a recipient rejects a supplier’s tax invoice or debit note?
Rejection before supplier files GSTR-1 allows editing. Post-filing rejection requires amendments in GSTR-1A or subsequent GSTR-1.
Q26. What happens to pending records?
Pending records remain in IMS until acted upon or the deadline in Section 16(4) is reached.
Q27. Can suppliers amend FCM invoices to RCM?
Yes, amendments are allowed. ITC for accepted FCM invoices is reversed when converted to RCM.
Q28. Can the place of supply be changed by suppliers?
Yes, subject to GST law timelines. Changes making ITC ineligible require recipients to reverse ITC.
Q29. What happens if recipients reject credit notes?
Rejected credit notes increase supplier liability in the subsequent GSTR-3B.
Miscellaneous
Q30. Can IMS data be downloaded?
Yes, taxpayers can download all data in Excel format for offline review.
Q31. Is it mandatory to act on invoices in IMS?
No, invoices with no action are deemed accepted. However, acting ensures accurate ITC claims.
Q32. What happens to GSTR-2A after IMS implementation?
GSTR-2A will continue to be generated as usual.
IMS Supplier View
Q33. What is IMS – Supplier View in GST?
IMS – Supplier View allows suppliers to track the action taken by their recipients (Accept, Reject, Pending) on invoices that the supplier has uploaded in GSTR-1 or IFF. This helps suppliers monitor which invoices are accepted for ITC and which may need attention.Q33. What is IMS – Supplier View in GST.
Q34. How can I access the IMS Supplier View on the GST portal?
Navigate to Services > Returns > Invoice Management System (IMS)
Then select the ‘Outward Supplies’ tab to view the Supplier Dashboard.
Q35. What invoice actions can I see as a supplier?
You can see the following statuses:
- Accepted – Recipient has confirmed the invoice for ITC.
- Rejected – Recipient has declined the invoice (may be due to mismatch or error).
- Pending – Recipient hasn’t taken any action yet.
Q36. Can I modify or re-upload an invoice from IMS Supplier View?
No. You cannot modify invoices through IMS. To correct an error:
- Use amendments in GSTR-1 in a future tax period, or
- Issue a credit/debit note, as applicable.
Q37. When are invoices visible in IMS Supplier View?
Invoices become visible in IMS as soon as:
- You save or file them in GSTR-1 or IFF.
- The recipient accesses their IMS to act on them.
Q38. What happens if the recipient rejects an invoice?
If an invoice is rejected:
- It will not be considered for ITC in their GSTR-2B.
- It will be added up to your liability in next month GSTR 3B
- You may need to follow up with the recipient or issue a correction (via amendment or credit note).
Q39. Will rejection or acceptance of an invoice affect my GSTR-1?
No. The recipient’s actions do not change your GSTR-1. IMS is for viewing purposes only. Your liability remains as per your GSTR-1 filed.
Q40. Can I download a report of invoice actions taken by recipients?
Yes. You can use the download or export feature in IMS to extract invoice data and action statuses in Excel format.
Q41. Does IMS include B2C or NIL-rated invoices?
No. IMS only displays B2B invoices (those impacting Input Tax Credit). B2C, NIL, or exempt invoices are not shown.
Q42. Is using IMS mandatory for suppliers?
No. It is not mandatory, but it is highly recommended for better communication, early dispute resolution, and seamless ITC flow.