With the launch of the Invoice Management System (IMS), the GST landscape is set for a major upgrade. Effective from October 1, 2024, IMS empowers taxpayers to manage invoices more efficiently, allowing you to accept, reject, or keep invoices pending. This blog dives deep into the functionalities of IMS, covering frequently asked questions (FAQs) and critical scenarios that impact Input Tax Credit (ITC).
Let’s explore the key features, actions, and everything you need to know about the Invoice Management System (IMS).
What is the Invoice Management System (IMS)?
IMS is a new feature within the GST system. It allows you to take actions on the invoices/records saved or filed by your suppliers in GSTR-1/1A/IFF. You can now accept, reject, or keep invoices pending, enabling more precise ITC claims.
How to Access IMS:
To access IMS, follow this path on the GST portal:
Dashboard > Services > Returns > Invoice Management System (IMS).
When Will IMS Be Available?
IMS goes live on October 1, 2024, but taxpayers can start taking actions on invoices beginning from October 14, 2024.
What Records are Available in IMS?
IMS displays all saved or filed original invoices and their amendments by suppliers. However, certain documents where ITC is ineligible due to POS rules or Section 16(4) of the CGST Act will automatically appear in the “ITC Not Available” section of GSTR-2B.
Key Actions You Can Take in IMS
Taxpayers can take the following actions on invoices in IMS:
- Accept: The accepted invoices will flow into the “ITC Available” section of GSTR-2B, and ITC will be auto-populated in GSTR-3B.
- Reject: Rejected invoices will move to the “ITC Rejected” section and won’t auto-populate in GSTR-3B.
- Pending: Pending invoices will not appear in GSTR-2B or GSTR-3B until an action is taken.
- No Action: If no action is taken, the invoice will be deemed accepted when GSTR-2B is generated.
Multiple Actions and Amendments
You can take action on an invoice multiple times before filing GSTR-3B. However, only the latest action will be recorded. If the supplier amends an invoice, you must take fresh action on the amended record. For invoices spanning multiple GSTR periods, it is mandatory to act on the original invoice before addressing the amendment.
Records that Won’t Appear in IMS
Certain records will not be available in IMS but will appear in GSTR-2B. These include:
- Documents from GSTR 5, GSTR 6
- ICEGATE documents
- Reverse charge mechanism (RCM) records
- Documents where ITC is ineligible due to POS rules or Section 16(4) of the CGST Act
Key FAQs on IMS Functionality
- Who Can Access IMS?
IMS is available to normal taxpayers, SEZ units, developers, and casual taxpayers. - When Can You Act on a Record?
You can take action on an invoice as soon as the supplier saves the invoice in GSTR-1/1A/IFF. - What Happens to Rejected Records?
Rejected records will not contribute to the available ITC in GSTR-2B. If the supplier amends the record, it will reappear in IMS for fresh action. - Can Action Be Taken After GSTR-2B Generation?
Yes, you can still take action on a record even after GSTR-2B has been generated. If any changes are made after the 14th of the month, you must recompute GSTR-2B before filing GSTR-3B. - How to Handle Pending Invoices?
Pending invoices remain in IMS until action is taken or the statutory timeline under Section 16(4) is reached. Once the deadline passes, they will be removed from IMS.
Impact of IMS on ITC and Supplier Liability: Table Overview
The following table summarizes how different actions in IMS impact ITC and supplier liability:
| Record Type | Action Taken | ITC Amount | Supplier Liability |
|---|---|---|---|
| B2B/DN/ECO Invoice | Accept | Full Amount | None |
| Reject | None | None | |
| Pending | None | None | |
| B2BA/DN Upward | Accept (Full) | Full Amount | Delta (additional amount) |
| Reject | None | None | |
| Pending | None | None | |
| CN Accept | Accept (Full) | Full Amount | None |
| Reject | None | Full amount added |
Note: “Delta” indicates the change in value from the original record.
Can You Download IMS Data?
Yes, IMS allows you to download your data in an Excel format, making it easy to reconcile your records.
Additional FAQs
- What Happens if the Supplier Changes an Invoice?
If the supplier amends an invoice, the amended version replaces the original in IMS. You must take fresh action on the amended invoice. - How Does IMS Handle Reverse Charge Invoices?
Reverse charge invoices will not appear in IMS but will still be visible in GSTR-2B. - Can You Act on Multiple Invoices at Once?
Yes, IMS allows you to take bulk actions on multiple records at the same time.
Conclusion
The Invoice Management System (IMS) is a game-changer for taxpayers. By offering real-time invoice management, it simplifies the ITC process and helps businesses stay compliant with GST regulations. Through IMS, taxpayers can easily accept, reject, or keep invoices pending, ensuring a more accurate reconciliation process.
For more information please refer below FAQ Guide:
LinkedIn Link : RMPS Profile
This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
Published on: September 24, 2024