Invoice Management System ( IMS ) facility Goes Live on GST Portal
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Invoice Management System ( IMS ) facility Goes Live on GST Portal
In a significant advancement for the Goods and Services Tax ( GST ) system, the GST Common Portal has rolled out the Invoice Management System ( IMS ) starting today, October 14, 2024.
This new facility is set to revolutionize how recipient taxpayers handle invoices by offering a streamlined process for accepting, rejecting, or deferring invoices for later action.
The IMS promises to enhance the accuracy of Input Tax Credit (ITC) claims, reduce errors, and improve overall GST compliance for businesses.
What is the Invoice Management System ( IMS )?
The IMS is a new feature available on the GST portal that allows recipient taxpayers to take action on invoices issued by suppliers, including accepting, rejecting, or marking invoices as pending. This process will simplify the reconciliation of ITC and help ensure that taxpayers claim the correct amount of credit.
From October 14, 2024, today, taxpayers will be able to view invoices uploaded by their suppliers through GSTR-1, IFF, or GSTR-1A and decide whether to accept or reject them. If no action is taken by the taxpayer, the system will automatically consider these invoices as accepted, and they will be included in the taxpayer’s GSTR-2B, allowing ITC to be claimed.
Key Features of IMS
1. Real-Time Invoice Management: Taxpayers can view and take action on invoices uploaded by suppliers in real-time. The system allows businesses to manage their invoices more efficiently, ensuring that no eligible ITC is missed or incorrectly claimed.
2. Inward and Outward Supplies: The IMS dashboard provides two sections: one for managing inward supplies (invoices from suppliers) and another for outward supplies (invoices issued to customers). While the outward supplies section will be available shortly, inward supplies can be managed immediately.
3. Enhanced ITC Accuracy: The IMS provides an opportunity to scrutinize invoices before they are considered for ITC claims. Accepted invoices will directly contribute to the ITC calculation in GSTR-2B, while rejected invoices will be excluded from the ITC pool.
4. Actions on Invoices: Taxpayers can:
Accept: The invoice is valid and will be considered for ITC in GSTR-2B.
Reject: The invoice is incorrect, and no ITC will be claimed.
Pending: The invoice will be reviewed later, and no action will be taken until then.
5. Deemed Acceptance: If no action is taken by the taxpayer, the system will automatically treat the invoices as accepted when generating GSTR-2B on the 14th of every month.
6. Flexibility in Recomputing GSTR-2B: Taxpayers can continue to modify their actions on invoices even after the draft GSTR-2B is generated. If a taxpayer makes changes after the 14th of the month, they must recompute GSTR-2B before filing GSTR-3B.
7. Bulk Action Functionality: To simplify large volumes of transactions, IMS allows taxpayers to accept, reject, or mark multiple invoices as pending in one go. A bulk selection option ensures that managing a high number of invoices remains efficient.
How to Use the IMS
1. Access the IMS: Log in to the GST portal (www.gst.gov.in), navigate to Services > Returns > Invoice Management System (IMS), and view the available invoices.
2. View Inward Supplies: Inward supplies reported by suppliers are categorized into accepted, rejected, pending, or no-action-taken invoices. Taxpayers can filter these records based on various criteria, such as GSTIN or invoice date.
3. Take Action: Select the invoices you wish to act on. You can individually or in bulk accept, reject, or keep them pending. After selecting the action, click on the “Save” button to finalize your decision.
4. Download Records: The IMS provides a simple Excel download option for taxpayers to review their invoices offline.
Impact on GSTR-2B and GSTR-3B
Draft GSTR-2B Generation: On the 14th of each month, the system will generate a draft GSTR-2B for the taxpayer, including all accepted and no-action-taken invoices. This draft can be treated as the final GSTR-2B if no further actions are taken.
Recomputing GSTR-2B: If any action is taken on invoices after the draft is generated, taxpayers must recompute their GSTR-2B before filing GSTR-3B to reflect the updated ITC details.
Benefits of IMS
Streamlined Reconciliation: IMS helps taxpayers reconcile their records with suppliers’ invoices more accurately, ensuring better compliance and reducing the risk of errors in ITC claims.
Time-Saving: The system reduces the manual burden of reviewing and managing invoices, especially for businesses dealing with large volumes of transactions.
The launch of the Invoice Management System on the GST portal marks a significant milestone in India's GST regime
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