Important GST Update: Invoice Management System (IMS) set to be implemented from October 14, 2024

Important GST Update: Invoice Management System (IMS) set to be implemented from October 14, 2024

GSTN has introduced a new facility titled Invoice Management System (IMS) on the GST portal which is likely to have a significant impact on the way the GST returns are filed and, specifically, how ITC is claimed by the recipient in his GSTR-3B.

GSTN, in its draft manual on IMS, has called it a significant leap forward in the GST ecosystem and has used almost all the adjectives in its vocabulary to introduce IMS such as groundbreaking, revolutionising, innovative, etc. In reality, IMS aims to fill the void left by non-implementation of the GSTR-1, 2, 3 as originally envisaged at the time of implementation of GST. Though not reverting to the two-way communication system originally envisaged (for the time being), the IMS will allow the recipient to either ‘accept’, ‘reject’ or ‘keep pending’ the ITC appearing in his GSTR-2B, so that the reporting in GSTR-3B becomes easier.

Most importantly, IMS is an optional facility. It is not mandatory to accept or reject invoices in the IMS dashboard for GSTR-2B generation. Any invoices appearing in the IMS dashboard on which no action is taken shall be deemed to be accepted and thereby included in the draft GSTR-2B.

All the stakeholders dealing with GST return filing must get themselves acquainted with IMS. While the GSTN has already released a draft manual and FAQs on IMS (can be accessed in the 'News and Updates' section of the GST portal), we are doing our part by providing you with a flow chart of the IMS process. We may call it a "IMS cheat sheet"!

Hope you find it useful.

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