Options in Invoice Management System (IMS) under GST
GST to introduce new facility of IMS(Invoice Management System) from 1st October 2024. This facility will allow the taxpayers to match their inward supply invoices reflecting in IMS dashboard with their records before filing their Form GSTR 3B.
GST is the biggest indirect tax reform introduced in the Country. The Goods and Services Tax (GST) department has shared information about a new system called the IMS(Invoice Management System). This system will be available for the taxpayers from 1st October 2024. The primary function of this system is to have the matching concept of the invoices. Matching means invoices issued by suppliers will be accepted or rejected by the recipient before taking Input Tax Credit (ITC). Using this invoice management system, a recipient taxpayer can take four different actions regarding an invoice that appears automatically on their IMS dashboard: accept, reject, mark as pending, or take no action. Invoices that are accepted will be included in the GSTR-2B. Invoices rejected by the recipient will not be included in GSTR-2B. Invoices that are kept pending will not be part of GSTR-2B and will stay on the IMS dashboard, to be accepted in future months. However, the limit specified in Section 16(4) for ITC to be considered for these pending invoices. For invoices marked with no action, they will be considered deemed accepted and will be included in GSTR-2B.
This facility will not add extra compliance burden for taxpayers because it is not mandatory. If a taxpayer recipient doesn't accept or take any action, their invoices will automatically become part of GSTR-2B. For quarterly filers (QRMP taxpayers), GSTR-2B will be prepared quarterly, and they can accept or reject invoices accordingly. Generally, taxpayers can access GSTR-2B on the 14th of each month. However, with the IMS system, invoices appear as soon as the supplier enters them into GSTR-1. The acceptance or rejection actions can be done immediately. Taxpayers can take these actions until they file their GSTR-3B. Once a taxpayer files GSTR-3B, they cannot amend the previous month's GSTR-2B.
Following invoices will not appear in GSTR 2B, Inward RCM supplies where supplier has reported in the Table 4B of IFF / GSTR 1 or GSTR 1A and supplies where ITC is not eligible due to section 16(4) of CGST Act or on account of POS rule. This input have to be taken directly while filing GSTR 3B.
If any changes are made to the information in GSTR-1, those changes will automatically reflect in the IMS for the recipient. Furthermore, after the introduction of this system, GSTR-2B will be sectional. This means that the GSTR-2B will not be generated unless the taxpayer has filed their GSTR-3B for the previous month.
The IMS system won't impose an added burden on taxpayers but will assist them in reviewing invoices reflected in GSTR-2B and taking necessary actions, such as rejection or amendment, before filing GSTR-3B.
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