The Invoice Management System (IMS) is a feature within the GST system where the invoices or records saved or filed by the supplier in GSTR-1/1A/IFF can be accepted, rejected, or kept pending by recipients to accurately avail ITC.
With the introduction of the Invoice Management System (IMS), the way taxpayers handle invoices and manage business processes will undergo significant changes. This new feature enables taxpayers to easily accept, reject, or mark invoices as pending within the system, allowing them to address them at a later time as needed. This streamlines the reconciliation process and enhances the accuracy and efficiency of GST compliance. To gain a deeper understanding of this new functionality, you can refer to the FAQs on IMS.
| Sr No. | Question | Answer |
| 1. | What is Invoice Management System (IMS)? | The Invoice Management System (IMS) is a feature within the GST system where the invoices or records saved or filed by the supplier in GSTR-1/1A/IFF can be accepted, rejected, or kept pending by recipients to accurately avail ITC. |
| 2. | How can I access IMS? | IMS can be accessed through the GST portal via the following path: Dashboard > Services > Returns > Invoice Management System (IMS) Dashboard. |
| 3. | When will IMS be available to taxpayers? | IMS will launch on the GST Portal starting 1st October 2024, and taxpayers will be able to take action on received invoices or records from 14th October 2024 onwards. |
| 4. | What records will be available in IMS for action? | All original invoices or records and their amendments filed by suppliers in GSTR-1/1A/IFF will be available for action in IMS. However, documents ineligible for ITC due to POS rules or Section 16(4) of the CGST Act will be excluded. |
| 5. | What happens to accepted and rejected records? | Once GSTR-3B is filed for a particular period, all accepted or rejected records related to that GSTR-2B period will be removed from IMS. Only pending records and future period invoices will remain in IMS. |
| 6. | When will documents be available in IMS? | Documents will appear in IMS as soon as they are saved by the supplier in their GSTR-1/1A/IFF. |
| 7. | When can the recipient take action on a record? | The recipient can take action on an invoice or record in IMS immediately after the supplier saves it in GSTR-1/1A/IFF. |
| 8. | What documents are part of GSTR-2B but not IMS? | Records from GSTR 5, GSTR 6, ICEGATE documents, RCM records, and those ineligible for ITC due to POS rules, Section 16(4), or Rule 37A will flow directly to GSTR-2B and will not appear in IMS. |
| 9. | Who can access IMS functionality? | Normal taxpayers, including SEZ units or developers, and casual taxpayers are eligible to access the IMS functionality. |
| 10. | What actions can I take in IMS? | You can take the following actions in IMS: Accept, Reject, or Mark as Pending. Records not acted upon will be deemed accepted when GSTR-2B is generated. |
| 11. | Are there any records where “Pending” action is not allowed? | Yes, pending action is not allowed for rejected original credit notes, rejected upward amendments, and specific cases where the original document has been accepted or rejected by the recipient. |
| 12. | Can multiple actions be taken on a document? | Yes, you can take multiple actions on a document before filing GSTR-3B. The latest action will override the previous ones. Once GSTR-3B is filed, actions on those records are locked. |
| 13. | What happens if the supplier amends a record after action is taken on the original? | If the original and amended records belong to different GSTR-2B periods, action must be taken on the original first. If both belong to the same period, action on the amended record will override that on the original. |
| 14. | What happens to documents acted upon in IMS? | Accepted records will appear in the “ITC Available” section, rejected records will appear in “ITC Rejected,” and pending records will stay in IMS. Records with “No Action” status are deemed accepted when GSTR-2B is generated. |
| 15. | Which documents are considered for GSTR-2B generation? | Filed and accepted (or deemed accepted) and rejected records are considered for GSTR-2B generation. Saved records remain as “No Action” and flow with their pre-saved status for GSTR-2B generation. |
| 16. | What if the supplier edits or deletes a document after a recipient action? | If a supplier edits a saved document before filing GSTR-1, the recipient’s previous action is reset, and the amended record will require fresh action in IMS. Deleted documents will be removed from IMS. |
| 17. | Do Reverse Charge documents form part of IMS? | No, RCM invoices are not part of IMS but will be reflected in GSTR-2B as they are today. |
| 18. | What views are available in IMS for taxpayers? | Two views are available: 1) Inward supply view for recipients to view supplier invoices, and 2) Outward supply view (coming soon) for suppliers to view recipient actions on their documents. |
| 19. | What happens if the recipient rejects a record? | If rejected before GSTR-1 filing, the supplier can edit the record, and it will be available again in IMS. If rejected after GSTR-1 is filed, the supplier must amend the record in GSTR-1A or subsequent GSTR-1. |
| 20. | What happens to documents in IMS after filing GSTR-3B? | All accepted or rejected records for a particular GSTR-2B period will be removed from IMS after GSTR-3B filing. |
| 21. | What happens to records marked as pending? | Pending records will remain in IMS until the cut-off date mentioned in Section 16(4) of the CGST Act. After the deadline, they will be removed from IMS. |
| 22. | Can I download IMS data? | Yes, IMS data can be downloaded in Excel format. |
| 23. | What is draft GSTR-2B? | Draft GSTR-2B is generated on the 14th of each month and includes accepted (or deemed accepted) and rejected records. Rejected records will not flow into GSTR-3B. |
| 24. | Can action be taken after draft GSTR-2B is generated? | Yes, actions can be taken on draft GSTR-2B records until GSTR-3B is filed, after which GSTR-2B must be recomputed to reflect the changes. |
| 25. | In what scenario is draft GSTR-2B not generated on the 14th of the month? | If the previous period’s GSTR-3B is not filed, the system will not generate draft GSTR-2B on the 14th. However, it can be generated from IMS after filing the previous GSTR-3B. |
| 26. | How many times can GSTR-2B be recomputed? | There is no limit on the number of times GSTR-2B can be recomputed before GSTR-3B is filed. |
| 27. | How does GSTR-2B work for quarterly taxpayers? | For quarterly taxpayers, GSTR-2B will not be generated for months M1 and M2. Instead, GSTR-2BQ for the full quarter will be generated on the 14th of the following month, and recomputation is allowed until GSTR-3B is filed. |
| 28. | Will GSTR-2A still be generated? | Yes, GSTR-2A will continue to be generated as it currently is. |
| 29. | Is it mandatory to recompute GSTR-2B? | Yes, if actions are taken on IMS records after draft GSTR-2B is generated, GSTR-2B must be recomputed before GSTR-3B filing. |
| 30. | How can I take action on records in IMS? | Individual or multiple records can be acted upon by selecting the desired action (Accept, Reject, or Pending) and saving it. For multiple records, the same action must be applied to all selected records. |
| 31. | What happens if the recipient rejects a record for FY 2023-24 that is eligible for GSTR-2B of October 2024? | Recipients should reconcile records before filing GSTR-1 for October 2024. Rejected records will not flow into GSTR-2B. However, recipients can change their action to “Accepted” and recompute GSTR-2B before filing GSTR-3B for October 2024. |
| 32. | Can a supplier amend an invoice from FCM to RCM, and how does it affect ITC? | Yes, the supplier can amend an invoice from FCM to RCM within the legal time limit. The system will reduce ITC for accepted FCM invoices, and the RCM invoice will appear in the recipient’s GSTR-2B. |
| 33. | Can the supplier change the place of supply in GSTR-1, and what is the impact on ITC? | Yes, the place of supply can be changed by the supplier, and the amended record will reflect in the recipient’s GSTR-2B. The recipient must take appropriate action on this amended record. |
Click Here to Access the Draft Manual on Invoice Management System
Also Read: Section 74 of CGST Act: Determination of Tax & Adjudication of Demand
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