GST Invoice Management System: Key Change affecting Over 12 Million+ Businesses from October 1st
This facility shall be available to the taxpayer from 1st October onwards on the GST portal.
In a significant leap forward for India's Goods and Services Tax ( GST ) ecosystem, the GSTN has introduced a groundbreaking facility known as the Invoice Management System (IMS) soon to be unveiled in the Goods and Services Tax Portal. Do you want to Learn the Practical Aspects of Newly introduced GST Invoice Management System, Enroll Today Effective from October 1st, this new feature...
In a significant leap forward for India's Goods and Services Tax ( GST ) ecosystem, the GSTN has introduced a groundbreaking facility known as the Invoice Management System (IMS) soon to be unveiled in the Goods and Services Tax Portal.
Do you want to Learn the Practical Aspects of Newly introduced GST Invoice Management System, Enroll Today
Effective from October 1st, this new feature is set to revolutionise the way over 12 million businesses across the country interact with invoices, streamlining reconciliation processes and enhancing accuracy in GST compliance.
Empowering Taxpayers with Enhanced Invoice Control
Do you want to Learn the Practical Aspects of Newly introduced GST Invoice Management System, Enroll Today
The IMS empowers recipient taxpayers to seamlessly accept, reject, or keep invoices pending within the system for future action.
This functionality facilitates better management of Input Tax Credit (ITC) by allowing taxpayers to:
Accept Invoices: Confirming the validity of an invoice, making it eligible for ITC.
Reject Invoices: Disputing an invoice due to discrepancies or errors, preventing incorrect ITC claims.
Pending Invoices: Deferring action on an invoice for various reasons, with the option to address it later.
Adjustments in Reconciliation Process
By providing a platform for taxpayers to actively manage their received invoices, the IMS significantly reduces errors and discrepancies in GST returns. It ensures that only verified and accepted invoices form part of the taxpayer's GSTR-2B, which is crucial for accurate ITC claims.
Do you want to Learn the Practical Aspects of Newly introduced GST Invoice Management System, Enroll Today
- Automatic Acceptance: Invoices on which no action is taken will be treated as accepted by the system.
- Draft GSTR-2B Generation: A draft GSTR-2B will be generated on the 14th of each month, including only accepted or 'no action taken' invoices.
- Flexibility in Action: Taxpayers can change the status of invoices until the filing of Form GSTR-3B for the month.
Implementation Timeline
While interacting with the new system is not mandatory for GSTR-2B generation, actively managing invoices can lead to more accurate ITC claims and less clumsy GST compliance. IMS will be launched on the GST Portal from 1st October 2024 and shall be available to the taxpayers for taking actions on the received invoices/records from 14th October 2024 onwards.
Do you want to Learn the Practical Aspects of Newly introduced GST Invoice Management System, Enroll Today
To assist businesses in adapting to the new system, the GST Network ( GSTN ) has provided a detailed step-by-step guide complete with screenshots on the GST portal. Taxpayers are encouraged to familiarise themselves with the IMS to fully leverage its benefits.
GSTN issues FAQs on GST Invoice Management System (GST IMS)
Benefits to Businesses
Enhanced Accuracy: Reduces the likelihood of errors in GST returns by ensuring only valid invoices are considered for ITC.
Improved Efficiency: Streamlines the reconciliation process, saving time and resources.
Greater Transparency: Facilitates clear communication between suppliers and recipients regarding invoice acceptance.
Do you want to Learn the Practical Aspects of Newly introduced GST Invoice Management System, Enroll Today
Considerations for Businesses
Actions Required: While not mandatory, taking action on invoices can prevent future discrepancies.
Training Staff: Businesses may need to train accounting personnel to navigate the new system effectively.
System Updates: Companies should ensure their accounting software is compatible with the IMS functionalities.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
