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)”

To download official advisory, Click Here

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

The post GST Portal Update: New Changes in Invoice Management System (IMS) appeared first on Tax Unplug.

The IMS is a newly developed feature on the GST portal that allows recipient taxpayers to accept, reject, or keep pending any invoice issued by their suppliers. This functionality is crucial as it ensures that only the invoices accepted by the recipient will be included in their GSTR-2B as eligible ITC, making the process of claiming ITC more transparent and reliable.

How IMS works:

Once a supplier saves an invoice in their GSTR-1 or other related forms (IFF/GSTR-1A), it will automatically reflect in the IMS dashboard of the recipient. The recipient can then review the invoice and take following action:

1. Accept: The invoice becomes part of the recipient’s GSTR-2B, contributing to their eligible ITC.
2. Reject: The invoice will be excluded from the GSTR-2B calculation.
3. Pending: The invoice will not be included in the current GSTR-2B but will be transferred to next month.

If no action is taken, the invoice will be considered “Deemed Accepted” and will move to the GSTR-2B as accepted. This default action helps avoid unnecessary compliance burdens on taxpayers who might overlook or forget to act on an invoice.

Key Features of the IMS

1. Enhanced ITC Verification: Taxpayers now can review the genuineness and authenticity of invoices before they impact their ITC claims, reducing the chances of errors or fraudulent claims.

• Flexibility in Managing Invoices: With the option to keep invoices pending, taxpayers can choose to address specific invoices later, if it’s within the limits prescribed by Section 16(4) of the CGST Act, 2017.

• Sequential GSTR-2B Generation: The system ensures that the GSTR-2B for a period will only be generated if the GSTR-3B of the previous period has been filed, ensuring compliance and order in return filings.

• Impact on Supplier Liability: If a recipient rejects an invoice or credit note, the supplier’s liability may increase in their subsequent GSTR-3B, aligning with the actions taken by the recipient in IMS.

Benefits for Taxpayers

The IMS is more than just an invoice management tool; it’s a system that strengthens the ITC ecosystem within the GST framework. By allowing taxpayers to verify and act on invoices before they affect their ITC claims, the IMS provides greater control and accuracy, minimizing discrepancies between the supplier’s and recipient’s records.

This new system also offers a transparent mechanism for tracking the status of invoices, ensuring that both parties are aware of the actions taken and can respond accordingly. It’s a step forward in making the GST process more taxpayer-friendly, with fewer chances for errors and disputes.

GST Portal new Facility

To download official notification, Click Here

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”

The post GST Portal new Facility “Invoice Management System (IMS)” appeared first on Tax Unplug.