The GST Network (GSTN) has released an important advisory announcing a new GST Portal update in the Invoice Management System (IMS) aimed at simplifying the compliance process and reducing the burden on taxpayers. These changes are set to further streamline the verification of invoices and the claiming of Input Tax Credit (ITC).
Below is a detailed overview of the latest modifications introduced in the IMS, effective from the October 2025 tax period.
Pending Action for Specified Records
Taxpayers can now keep certain specified records in the pending category, but only for a limited period.
- For monthly filers, the pending status can be maintained for one month (one tax period).
- For quarterly filers, the pending status can be maintained for one quarter (one tax period).
The following types of records can be kept pending in the system:
- Credit Notes or upward amendments of Credit Notes
- Downward amendment of Credit Note where the original Credit Note was rejected
- Downward amendment of Invoice/Debit Note where the original Invoice was already accepted and GSTR-3B has been filed
- ECO-document downward amendment where the original document was accepted and GSTR-3B has been filed
This new control ensures that the pending option is used within a defined timeframe, encouraging timely reconciliation and reducing open items in the system.
Declaring ITC Reduction Amount
To bring more clarity on the reversal of Input Tax Credit (ITC), the GSTN has specified the following:
- If the recipient has not availed ITC on a particular invoice or document, no ITC reversal is required.
- If ITC has been availed only partially, the reversal obligation will be limited to the extent of ITC actually availed.
Accordingly, a new facility has been added in the IMS where taxpayers can declare the amount of ITC actually availed and, where applicable, enter the amount to be reversed.
This facility allows taxpayers to:
- Reverse ITC either in full or in part, by specifying the amount.
- Declare reversals that have already been made earlier or where ITC was never availed.
Such transparency helps prevent unnecessary reversals and ensures accurate ITC reporting in line with Section 16(4) of the CGST Act, 2017.
Option to Save Remarks
A new “Remarks” feature is being introduced in IMS, allowing taxpayers to add short notes or explanations while marking any record as rejected or pending.
- This feature is optional and will be rolled out shortly.
- The remarks entered will appear in the taxpayer’s GSTR-2B for future reference.
- The same will also be visible to suppliers in their Outward Supplies View Dashboard, helping them identify issues and make necessary corrections.
- This improvement enhances communication and transparency between suppliers and recipients.
Effective Date and Due Date
- The new functionalities related to keeping credit notes pending and declaring ITC amounts will be made effective from the October 2025 tax period.
- The due date for keeping records pending will be calculated based on the date or tax period in which such documents are communicated by the supplier.
Conclusion
GST Portal Update: New Changes in Invoice Management System (IMS)
The above-mentioned changes will apply only to records filed by suppliers after the rollout of these new features. Taxpayers are advised to carefully review the new provisions and utilize them while taking actions and filing returns for upcoming periods.
These updates in the IMS mark another progressive step towards a more transparent and efficient GST compliance system. By allowing partial ITC reversals, restricting the pending period, and introducing remarks for better communication, the GSTN aims to strengthen invoice-level accuracy and reduce disputes in ITC reconciliation. To read more about IMS Facility, click here to read our blog on “GST Portal new Facility “Invoice Management System (IMS)”
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