[Opinion] Introduction to the Invoice Management System (IMS) for GST Compliance

Pulkit Agarwal – [2024] 166 taxmann.com 117 (Article)

Introduction

The Goods and Services Tax Network (GSTN) is continuously evolving to enhance compliance and streamline Input Tax Credit (ITC) management. As part of these efforts, a new functionality called the Invoice Management System (IMS) is being introduced. Effective from October 1, 2024, IMS aims to empower recipient taxpayers by providing them the capability to accept, reject, or keep invoices pending within the system. This article provides a comprehensive overview of the IMS, its features, and its implications for taxpayers.

2. Key Features of the Invoice Management System (IMS)

2.1 Integration with GSTR-1, IFF, GSTR-5, and GSTR-6

Invoices reported in GSTR-1, Invoice Furnishing Facility (IFF), GSTR-5, and GSTR-6 will be available in the IMS. This integration allows recipients to manage their incoming invoices efficiently.

2.2 Actionable Options for Recipients

Recipient taxpayers have three options for each invoice:

• Accept the invoice
• Reject the invoice
• Keep the invoice pending for future actionThese actions can be performed from the time the supplier saves the records in GSTR-1, IFF, or GSTR-1A until the recipient files the corresponding GSTR-3B.
  

  2.3 Deemed Acceptance

If no action is taken on an invoice in the IMS, it will be deemed accepted. This default acceptance will be reflected in the GSTR-2B as eligible ITC.

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