The Invoice Management System (IMS), launched by the Goods and Services Tax Network (GSTN) on October 14, 2024, is designed to make ITC reconciliation simpler, faster, and more transparent. IMS allows taxpayers to accept, reject, or keep supplier invoices pending—reducing errors and mismatches in GST returns.

What is IMS under GST?

The Invoice Management System is an integrated GST portal feature that enables taxpayers to manage supplier invoices effectively. It helps match invoices uploaded by suppliers (in GSTR-1) with those viewed by recipients, ensuring smoother input tax credit (ITC) claims and easier dispute resolution.

Latest Updates (as of October 2025)

• Enhanced ITC Reversal: Taxpayers can now modify ITC reversal amounts when accepting credit notes.

• Pending Records: Specific records can be kept pending for one tax period (monthly or quarterly).

• Remarks Added: Optional remarks when rejecting or keeping invoices pending now appear in both GSTR-2B and the supplier dashboard for better communication.

Key Features of IMS

• Accept / Reject / Pending Options: Recipients can classify invoices, credit notes, or amendments for one tax period. Inaction leads to deemed acceptance.

• Precise ITC Reversal: Reverse ITC only for the portion actually availed.

• Improved Transparency: Add remarks for rejected or pending invoices—visible to both parties.

• Dashboard Summary: Centralized view of all inward records by status—Accepted, Pending, or Rejected.

• Auto GSTR-2B Integration: Only accepted invoices appear in GSTR-2B; others are excluded until resolved.

• Bulk Actions & Downloads: Take multiple actions together and export data for audit purposes.

• Supplier Amendments: Any change in supplier invoices (via GSTR-1A) triggers review in the next tax period.

How IMS Works

1. Suppliers upload invoices through GSTR-1/IFF or make changes using GSTR-1A.

2. Recipients view invoices on the IMS dashboard and take action—Accept, Reject, or Pending—before filing GSTR-3B.

3. Accepted invoices move into GSTR-2B for ITC claims.

4. Pending invoices carry forward for one period, after which they are deemed accepted if no action is taken.

5. Amended invoices replace old ones and must be acted upon again.

Using IMS on the GST Portal

1. Login → Services → Returns → Invoice Management System (IMS)

2. View Dashboard: See supplier invoices categorized by type and action status.

3. Take Actions: Mark as Accept, Reject, or Pending (with optional remarks).

4. Recompute GSTR-2B: If changes are made after the 14th of the month.

5. File GSTR-3B: Accepted invoices auto-populate the ITC section for accurate reporting.

Benefits of IMS

• Simplified ITC Reconciliation: Easier tracking of eligible and pending credits.

• Error-Free GSTR-3B Filing: All accepted invoices auto-populate, reducing omissions.

• Audit Transparency: Each invoice action is traceable for audit verification.

• Less Manual Work: Automated data flow minimizes manual reconciliation.

• Supports QRMP Taxpayers: Quarterly filers can also use IMS for smoother compliance.

In Summary

The GST Invoice Management System (IMS) modernizes invoice reconciliation by enabling real-time review and communication between suppliers and recipients. It ensures that input tax credit claims are more accurate, reduces compliance risk, and enhances transparency in GST reporting.