GSTN issued a draft manual for IMS!

GSTN issued an advisory on 17^th September 2024 about the Draft Manual on Invoice Management System (IMS). Earlier, GSTN issued an advisory on 03^rd September 2024 that the IMS facility shall be available to the taxpayer from 1st October onwards on the GST portal. 

Now, GSTN has issued a user guide to access and implement the Invoice Management System.

Let's understand the process!

Advisory dated 17^th September 2024

Draft Manual on Invoice Management System

Sep 17th, 2024

In a significant leap forward in the Goods and Services Tax (GST) ecosystem, the GST Common Portal has unveiled a ground breaking new facility, the Invoice Management System (IMS), revolutionizing the way recipient taxpayers interact with invoices. This innovative feature empowers taxpayers to seamlessly accept, reject, or keep invoices pending in the system to avail later as and when required, streamlining the reconciliation process, and ensuring greater accuracy and efficiency in GST compliance.

The new system shall facilitate taxpayers in matching their records/invoices vis a vis issued by their suppliers for availing the correct Input Tax Credit (ITC). This facility is set to transform the way businesses manage their GST obligations, reducing errors, and saving time and resources. For a detailed draft manual Please Click Here.

Please Note – this is a draft manual and the final version shall be published later.

Thanks,
Team GSTN

Draft Manual on IMS- Key points

• IMS  facility shall be available to the taxpayer from 14th October onwards on the GST portal.
• It is not mandatory to accept or reject invoices in the IMS dashboard for GSTR2B generation. If a taxpayer chooses not to take any action on the received invoices then its GSTR-2B would be generated on the 14th of the month as being generated today.
• The invoices where no action would be taken by the recipient would be treated as accepted by the system and a draft GSTR-2B shall be generated including only accepted or ‘no action taken’ invoices. However, the recipient taxpayers are allowed to take action or change the action already taken on accepted invoices till the filing of Form GSTR-3B of the month.  
• You can access the www.gst.gov.in URL. The GST Home page is displayed. Login to the GST Portal with valid credentials. Click the Services > Returns > Invoice Management System (IMS) option.

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• In IMS, there are two sections- Inward Supplies and Outward Supplies.

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• In Inward Supplies, the summary screen will be displayed as follows. It will show your purchases and ITC based on GSTR 1 filed by your supplier.

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Users can accept/reject the invoices on the following screen:

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• In Outward Supplies, you can view the status of outward supplies reported based on actions taken by your recipient. The screen will be displayed as follows:

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You can download this in Excel for viewing purposes.

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Conclusion

In conclusion, the introduction of the Invoice Management System (IMS) by GSTN marks a significant advancement in the GST compliance landscape. By allowing taxpayers to actively manage and reconcile their invoices through a seamless interface, the IMS simplifies the process of claiming Input Tax Credit (ITC) and ensures greater accuracy in record-keeping. With the ability to accept, reject, or keep invoices pending, businesses can now maintain better control over their financial data, reducing errors and enhancing compliance efficiency. While the current draft manual provides comprehensive guidance on how to utilize the system, the final version will further refine and solidify this innovative feature, making GST compliance more transparent and accessible for all taxpayers