GST Advisory on IMS on Supplier View!

The Goods and Services Tax (GST) framework has brought about significant changes in the way businesses operate and manage their tax obligations in India. One of the key components of GST compliance is the Invoice Management System (IMS), which plays a crucial role in streamlining the process of tax reporting and reconciliation. 

GSTN issued an advisory on 13^th November 2024 about enabling the supplier to view responses submitted by its buyers in their IMS w.r.t. invoices reported by the supplier in his GSTR 1 / IFF.

Let’s understand the changes!

Advisory dated 13^thNovember 2024

Advisory on IMS on Supplier View

Nov 13th, 2024

1.  Invoice Management System (IMS) has been made available on the GST Portal from 14th October 2024 wherein the recipient taxpayer can accept, reject, or keep the invoices pending which are saved/filed by their suppliers in their respective GSTR-1/1A/IFF. This is to further inform you that the first GSTR-2B on the basis of such actions taken in IMS by the recipient taxpayers will be generated on 14th November 2024 for the October 2024 period.

2.  To further facilitate the taxpayers, the Supplier View of IMS has also been made available where the action taken by their recipients on the records/invoices reported in GSTR-1/1A/IFF, will be visible to the suppliers in the ‘Supplier View’ functionality. This will help a supplier taxpayer to see the action taken on their reported outward supplies and will help to avoid any wrong action taken by the recipient taxpayer.

3.  Also, kindly note that the below-mentioned records/invoices are not available in IMS for taking any kind of actions by the recipient but are visible in supplier view with the status as ‘No Action Taken’:

• Documents where ITC is not eligible either due to POS rule or Section 16(4) of the CGST Act
• Records attracting RCM Supplies

4.  Further, this is to be reiterated again that any action taken on records can be changed by the recipient taxpayer till the filing of GSTR-3B of the return period. In case the taxpayer changes any action after the generation of GSTR-2B, they need to click the GSTR-2B recompute button to recompute their GSTR-2B based on the new actions taken.

Thanking You,
Team GSTN

Key Highlights of the Advisory

1. IMS for suppliers for viewing purposes will be available on 14th November 2024 for the October 2024 period. 

2. This will help a supplier taxpayer to see the action taken on their reported outward supplies and will help to avoid any wrong action taken by the recipient taxpayer.

3. The following records are not available in the IMS of the buyer for action, but are shown in the supplier’s IMS as “No action taken”:

• ITC is not allowed due to Place of Supply (Pos) Rules (for example, ITC of Gujarat SGST is not available for a buyer registered in Maharashtra)
• ITC is not available as per section 16(4) of the CGST Act, 2017 i.e. invoice reported after 30^th November of the subsequent year to which the invoice pertains
• Invoice attracting RCM Supplies

Conclusion

The introduction of the Supplier View feature in the Invoice Management System (IMS) represents a major step forward in enhancing transparency and improving the efficiency of GST compliance. With this new functionality, suppliers can now easily track the actions taken by recipients on their reported invoices in GSTR-1/1A/IFF, helping to identify any discrepancies early and take corrective actions if necessary. This visibility empowers suppliers to ensure that no incorrect actions are taken on their records, thus facilitating smoother reconciliation and GST filing.

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