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INVOICE MANAGEMENT SYSTEM
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INVOICE MANAGEMENT SYSTEM

Owned by EaseMyGST - KB team
Last updated: Mar 05, 2025
2 min read

The Invoice Management System, or IMS, is a new feature within the GST portal in the late 2024 to allow recipient taxpayers accept, reject, or keep invoices pending when saved or filed by their supplier taxpayers.

Mismatches between invoices filed by suppliers and returns submitted by recipients are a significant issue taxpayers face when claiming input tax credits. 

Once rolled out, the IMS will allow registered recipients to match their records with invoices issued by suppliers in their GSTR-1. This will streamline recipient taxpayers' Input Tax Credit (ITC) availing process.  

The new IMS feature was implemented within the GST portal from 14th October 2024. 

How Does the Invoice Management System Work?

One of the significant problems that taxpayers face in GST compliance is availing input tax credit (ITC). The IMS functionality is expected to resolve some of the critical bottlenecks in that process. 

  • First, suppliers submit and save their GSTR-1 by the 11th of every month

  • Once the supplier saves and submits the recorded invoice, it will appear in the recipient taxpayer's IMS dashboard and eventually in the GSTR-2B.

  • The IMS dashboard includes the supplier's GSTIN, trade name, invoice number, and type.

  • The recipient taxpayers will be given three options: ACCEPT, REJECT, or PENDING, which must be acted upon within the time the supplier uploads the invoice, the recipient files their GSTR-3B by the 20th of the corresponding months. To take action on an invoice after the 14th of every month, recipients will need to recompute the draft GSTR-2B.

  • If the recipient chooses to ACCEPT, the accepted invoice becomes part of the recipient's auto-generated ITC statement or GSTR-2B, which is generated on the 14th of every month.

  • Suppose the recipient decides to REJECT an invoice saved by the supplier. In that case, it does not become part of the recipient's ITC report or GSTR-2B. 

  • When the recipient decides to keep an invoice PENDING, the portal does not count it as part of GSTR-2B for that month. IMS carries it forward to next month.  

  • Suppose a recipient does not take action on an invoice. In that case, the system considers it 'deemed accepted' and automatically adds it to the recipient's GSTR-2B. 

 

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