From 1 October 2024, a new functionality called the Invoice Management System (IMS) will be launched on the GST (Goods and Services Tax) portal.
The IMS will allow taxpayers to accept, reject, or mark an invoice received as pending. The functionality will be available for regular taxpayers and taxpayers using the Quarterly Return Monthly Payment (QRMP) scheme.
Under this new system, taxpayers are not explicitly obligated to accept/reject invoices. However, if no action is taken, the invoice will be automatically deemed accepted. Invoices marked as pending will not be considered for GSTR-2B generation for the month; the same will be carried forward in IMS itself for further action in subsequent months.
Accepted invoices automatically become a portion of the buyer’s GSTR-2B as eligible Input Tax Credit (ITC), which would then populate their GSTR-3B for the respective tax duration. The supplier’s liability will be increased in GSTR 3B for the subsequent tax period for the invoices/records the recipient rejected in the IMS.
IMS will ensure that only genuine and verified invoices contribute to ITC claims, promoting transparency and efficiency in invoice management and reducing mismatches in ITC claims.
