Invoice Management System—An Overview—CS. Pradeep Vyas

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The Tax Publishers GST--Invoice Management system Invoice Management System--An Overview CS. Pradeep Vyas The Goods and Services Tax Network (GSTN) has introduced the "Invoice Management System" (IMS), effective from 01st October, 2024, a functionality to enable the taxpayers receiving goods or services to accept, reject, or keep invoices pending within the system on GST portal. This article provides an overview of the IMS. 1. What is Invoice Management System (IMS) ? Higherto, the taxpayers have been taking input tax credit of all the invoices debit notes reflected in his auto-generated GSTR-2B, without reconciling the same from his ITC register. This practice was dangerous and risky which was likely to expose huge demand by of reversal of wrongly availed ineligible credit, interest under section 50(3) and penalty under section 73/74 read with section 122 of the Act. Invoice Management System (IMS) enables recipient of supply of goods or services to accept, reject, or keep invoices pending within the system on GST portal for the purpose of computation of input tax credit for the relevant tax period. Such actions can be taken even after generation of GSTR-2B of the relevant tax period till filing of GSTR-3B Return for the said period. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Invoice Management system

Invoice Management System--An Overview

CS. Pradeep Vyas

The Goods and Services Tax Network (GSTN) has introduced the "Invoice Management System" (IMS), effective from 01st October, 2024, a functionality to enable the taxpayers receiving goods or services to accept, reject, or keep invoices pending within the system on GST portal. This article provides an overview of the IMS.

1. What is Invoice Management System (IMS) ?

Higherto, the taxpayers have been taking input tax credit of all the invoices debit notes reflected in his auto-generated GSTR-2B, without reconciling the same from his ITC register. This practice was dangerous and risky which was likely to expose huge demand by of reversal of wrongly availed ineligible credit, interest under section 50(3) and penalty under section 73/74 read with section 122 of the Act.

Invoice Management System (IMS) enables recipient of supply of goods or services to accept, reject, or keep invoices pending within the system on GST portal for the purpose of computation of input tax credit for the relevant tax period.

Such actions can be taken even after generation of GSTR-2B of the relevant tax period till filing of GSTR-3B Return for the said period.