Introduction
Gaining a clear understanding of the Invoice Management System (IMS) within the Goods and Services Tax (GST) framework is crucial for both businesses and individual taxpayers. This platform allows recipients to respond to invoices submitted by their suppliers, facilitating correct claims for Input Tax Credit (ITC).In this blog, we’ll address the most important aspects of the Invoice Management System (IMS) as covered in our IMS GST FAQs to guide you through the system efficiently, ensuring smooth management of your invoices.
IMS GST FAQs– Answering Common Queries
Delve into the common questions surrounding IMS GST to learn more about its functionalities, how to access it, and its influence on your tax returns and ITC claims.
1. What is the Invoice Management System (IMS)? The Invoice Management System (IMS) is a feature in the GST system where invoices or records submitted by suppliers in GSTR-1, GSTR-1A, or IFF can be reviewed by recipients. Recipients can accept, reject, or hold invoices to ensure proper claiming of Input Tax Credit (ITC).
2. How can I access IMS? You can access IMS on the GST portal using the following path: Dashboard > Services > Returns > Invoice Management System (IMS) Dashboard.
3. When will IMS be available to taxpayers? IMS will be launched on the GST portal from 1st October 2024. Taxpayers can take action on received invoices or records starting from 14th October 2024.
4. What records will be available in IMS for action? IMS will display all saved or filed original invoices/records and their amendments submitted by suppliers via GSTR-1, GSTR-1A, or IFF. Documents where ITC is not eligible (due to the POS rule or Section 16(4) of the CGST Act) will not be shown in IMS but will directly appear in the “ITC Not Available” section of GSTR-2B.
5. What happens to accepted or rejected records? Accepted or rejected records for a specific GSTR-2B period will be removed from IMS once GSTR-3B is filed. Pending records and future tax period invoices will remain in IMS.
6. When will documents be visible in IMS? Documents will be available in IMS immediately after suppliers save them in GSTR-1, GSTR-1A, or IFF.
7. When can the recipient take action on a record? Recipients can take action on a record as soon as the supplier saves the invoice or record in GSTR-1, GSTR-1A, or IFF.
8. What records will not appear in IMS but be part of GSTR-2B? The following documents won’t appear in IMS but will flow directly to GSTR-2B:
- Records from GSTR-5 and GSTR-6.
- ICEGATE documents.
- Reverse Charge Mechanism (RCM) records.
- Records where ITC is ineligible due to POS rules or Section 16(4) of CGST Act.
- Documents with ITC reversal due to Rule 37A.
9. Who can access IMS? Normal taxpayers, SEZ unit/Developers, and casual taxpayers registered under GST can access IMS.
10. What actions can I take on an invoice/record in IMS? You can take the following actions:
- Accept
- Reject
- Pending
Note: By default, records will be categorized as “No Action.” Records with “No Action” will be considered as deemed accepted during GSTR-2B generation.
11. Are there any invoices where pending action is not allowed? Yes, pending action is not allowed for the following scenarios (Either accept or reject the invoices):
- Original credit note rejected by the recipient.
- Upward amendment of a credit note rejected by the recipient, irrespective of the action taken by recipient on the original credit note.
- Downward amendment of a credit note rejected by the recipient if the original credit note was rejected.
- Downward amendment of an invoice/debit note rejected when the original was accepted, and GSTR-3B was filed.
12. Can I take multiple actions on a document? Yes, multiple actions can be taken before filing GSTR-3B. The most recent action will overwrite the previous one. However, actions will be frozen upon filing GSTR-3B.
13. What happens to the original record if the supplier amends it? If the original and amended records fall in different GSTR-2B periods, action must be taken on the original record before the amended record. The system will block actions on amended records if the original hasn’t been processed. If both belong to the same GSTR-2B period, the amended record’s action will take precedence.
14. What happens to documents after actions are taken on IMS?
- Accepted: Records will flow into the “ITC Available” section of GSTR-2B and auto-populate in GSTR-3B.
- Rejected: Records will be listed in the “ITC Rejected” section of GSTR-2B, and ITC will not auto-populate in GSTR-3B.
- Pending: Records will remain in IMS and not affect GSTR-2B/3B until action is taken or the timeline in Section 16(4) lapses.
- No Action: Deemed accepted and will be part of GSTR-2B.
15. Which documents will be considered for GSTR-2B generation? Filed and accepted (or deemed accepted) records will be used for GSTR-2B generation. Saved records will maintain their pre-saved status unless filed.
16. What if I take action on a saved document and the supplier edits it before filing? If a saved document is edited before filing, the edited record will replace the original in IMS, and previous actions will be reset.
Similarly, if a document is deleted before filing of GSTR-1/1A/IFF by supplier then such document will be removed from IMS also.
17. Are Reverse Charge documents from registered suppliers included in IMS? No, Reverse Charge Mechanism (RCM) invoices will continue to be part of GSTR-2B but will not appear in IMS.
18. What will be visible in IMS?
- Recipient View: Displays all inward supplies saved/ filed by suppliers, allowing recipients to take action.
- Supplier View: Displays actions taken by recipients on the supplier’s documents (coming soon).
19. What happens if the recipient rejects a record? If the record is rejected before filing GSTR-1 by the supplier, the supplier can edit the record and file GSTR-1. If rejected after filing of GSTR-1, the supplier must amend the record in GSTR-1A or subsequent GSTR-1/IFF.
20. What happens to documents in IMS after filing GSTR-3B? Accepted or rejected records for a specific GSTR-2B period will be removed from IMS once GSTR-3B is filed.
21. What happens to pending documents in IMS? Pending records remain in IMS until the timeline in Section 16(4) of the CGST Act expires. Once that timeline passes, these records will be removed.
22. Can I download IMS data? Yes, an Excel download facility is available for IMS data.
23. What is draft GSTR-2B? GSTR-2B will be generated on the 14th of every month, capturing accepted and rejected records, and will serve as a draft GSTR-2B.
24. Can I take action after draft GSTR-2B is generated? Yes, actions can still be taken on records after draft GSTR-2B is generated, up until GSTR-3B is filed.
25. Is there any scenario where draft GSTR-2B will not be generated by the system on the 14th of the subsequent month? Yes, if the taxpayer has not filed the previous period’s GSTR-3B, the system will not generate their draft GSTR-2B on the 14th. However, the taxpayer can generate their GSTR-2B from the IMS dashboard after filing the previous GSTR-3B.
26. How many times can GSTR-2B be regenerated? There is no restriction on the number of times GSTR-2B can be recomputed or regenerated before filing GSTR-3B.
27. Will GSTR-2B be generated for quarterly taxpayers? For quarterly taxpayers, GSTR-2B will only be generated for the entire quarter (M1, M2, and M3) on the 14th of the following month.
28. What will happen to GSTR-2A? GSTR-2A will continue to be generated as it is.
29. Is it mandatory to re-compute GSTR-2B? Yes, if any change is made by the recipient on the IMS dashboard after the draft GSTR-2B is generated by the system, it is mandatory to re-compute GSTR-2B.
30. How to take action on records available on IMS dashboard?
- Action on Individual Record: Select the radio button at the line-item level, then click the save button to confirm the action.
- Action on Multiple Records: Select multiple records using the checkbox option, then use the main action buttons that appear. Note: Only one type of action can be applied to multiple records.
31. What happens if the recipient rejects the Tax Invoice or Debit Note for FY 23-24 (eligible for GSTR-2B of October 2024)?
- The taxpayer must reconcile records before filing GSTR-1 for the October 2024 period (due by November 11, 2024).
- Rejected records will not flow to GSTR-2B for October 2024. However, the recipient can change the action from rejected to accepted in IMS, re-compute GSTR-2B, and claim ITC in GSTR-3B for October 2024.
32. Can a supplier amend an FCM invoice to an RCM invoice, and what is the impact on ITC?
- Yes, the supplier can amend the invoice from FCM to RCM, subject to GST law timelines.
- If the original FCM invoice was accepted by the recipient, ITC will be reduced, and the RCM invoice will reflect in the recipient’s GSTR-2B.
33. Can the place of supply be changed in GSTR-1, and what is the impact on ITC?
- Yes, the supplier can change the place of supply in GSTR-1 within the GST law’s time limit.
- If the ITC becomes ineligible due to the change, the recipient must reverse the ITC in Table 4B1.
34. What happens if the recipient rejects the original Credit Note or an upward amended Credit Note?
- If the recipient rejects the Credit Note and files GSTR-3B, the corresponding liability will be added to the supplier’s GSTR-3B in the subsequent tax period
For any additional questions or clarifications, refer to the IMS GST FAQs .
For more information about IMS under GST Visit here.
