The recent developments in the Invoice Management System (IMS) are significant for taxpayers and their compliance processes. Below are the key updates along with actionable insights to help you navigate the changes effectively.
| Key Updates | Details | Action Points |
|---|---|---|
| Visibility of Invoices on IMS Dashboard | From the October 2024 return period onward, only those invoices eligible for GSTR-2B will be visible in the IMS dashboard. Invoices dated September 2024 or earlier will not be displayed. | Review the IMS dashboard regularly to ensure visibility of relevant invoices from October 2024 onwards. |
| First Draft GSTR-2B from IMS | The first draft GSTR-2B, based on IMS actions, will be accessible on 14th November 2024 for the October 2024 return period. | Prepare to access and review the draft GSTR-2B starting from 14th November 2024 for accuracy and necessary adjustments. |
| Post-14th November Actions | Taxpayers can perform actions on invoices in their IMS dashboard and recompute GSTR-2B for October 2024 until they file their GSTR-3B. | Utilize the IMS dashboard for necessary actions and recompute GSTR-2B until the filing of GSTR-3B. |
| Mandatory Actions on IMS | While taking action on IMS records is not mandatory, any inaction will result in the records being considered accepted, leading to a standard GSTR-2B generation. | Assess the necessity of acting on IMS records based on individual transaction requirements. |
| Rejection of Invoices/Debit Notes | Rejecting invoices or debit notes should be done judiciously. A rejected record means the recipient will not receive ITC. Rejection should occur only if there are significant errors or if the record is not relevant to the recipient. | Carefully evaluate each invoice before rejecting to prevent loss of ITC. |
| Availing ITC on Erroneously Rejected Invoices | If an invoice is mistakenly rejected in IMS, the recipient can accept it again before filing GSTR-3B to recover the credit for the FY 2023-24. | Monitor rejected invoices closely and accept any erroneously rejected invoices prior to GSTR-3B filing to ensure ITC recovery. |
| Acceptance of Genuine Credit Notes | Credit notes should be accepted in IMS if the ITC has already been reversed. There is no further need for ITC reversal, as the recipient has accounted for it already. | Confirm the acceptance of genuine credit notes to maintain accurate tax records. |
| Action on Upward Amended Invoices | No actions can be taken on upward amended invoices saved by the supplier until the supplier files the record. | Stay updated on supplier actions to facilitate necessary steps once the invoice is officially filed. |
| Prefer Amending Original Invoices over Credit Notes | It is advisable to amend the original invoice in GSTR-1 rather than relying on a credit note, as the system may not adequately link the two. | Encourage suppliers to amend original invoices to ensure accurate tracking and prevent complications. |
| Management of Pending Credit Notes in IMS | Credit notes cannot remain pending in IMS as they decrease the supplier's outward tax liability. Recipients may reject credit notes if they are not relevant. | Act promptly on credit notes by either accepting or rejecting based on their relevance to your transactions. |
| Implications of Rejected Credit Notes | If a credit note is rejected, the supplier's liability will increase in the subsequent GSTR-3B, rather than in the current period. | Communicate the implications of rejected credit notes to suppliers to help them manage their tax liabilities effectively. |
