Invoice Management System—Legality of Functional Mandate of IMS in View of its Direct Nexus with Claim of ITC—CS. Pradeep Vyas

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The Tax Publishers GST--Invoice Management System Invoice Management System--Legality of Functional Mandate of IMS in View of its Direct Nexus with Claim of ITC CS. Pradeep Vyas Invoice Management System has been introduced to enable taxpayers to reconcile there claim of Input Tax credit (ITC). It is helpful in reducing disputes and litigations between taxpayers and the department at the time of Audit, Scrutiny and Assessment. Although, it has direct nexus with the claim of ITC, it has no binding legal backing in CGST Act, even after 55th GST Council meeting. The learned author seeks to analyse the legality of functional mandate requirements of this functionality. 1.Introduction The Goods and Services Tax Network (GSTN) has introduced the "Invoice Management System" (IMS), to enable the taxpayers to reconcile the invoices and debit notes issued by suppliers of goods and services. This functionality was introduced for the purpose of correct computation of Input Tax Credit (ITC) for the relevant tax period. On the other hand, suppliers already have the facility to amend their invoices saved in their GSTR-1/IFF and the option of amendment of invoices through Form GSTR-1A is in hands. Thus, it become compulsory for recipient taxpayers to recompute their GSTR-2B before filing of GSTR-3B returns for every relevant period and no action is allowed after filing of GSTR-3B return of the relevant tax period. Further, certain limitations are already existing on the GST portal viz. lack of bulk upload utilities and offline reconciliation tools, only 500 documents are viewable at a time etc. However, micro and small taxpayers are not well equipped to follow the requirement of such a compulsion. Resultantly, the functionality, which was introduced to facilitate the taxpayers, has become mandatory for taxpayers to claim their ITC and the GST department is also rely on the same, while assessing the claim of ITC, even without any provision in the CGST Act in respect of this functionality. In this article, we will analyse the legality of the functional mandate of IMS. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Invoice Management System

Invoice Management System--Legality of Functional Mandate of IMS in View of its Direct Nexus with Claim of ITC

CS. Pradeep Vyas

Invoice Management System has been introduced to enable taxpayers to reconcile there claim of Input Tax credit (ITC). It is helpful in reducing disputes and litigations between taxpayers and the department at the time of Audit, Scrutiny and Assessment. Although, it has direct nexus with the claim of ITC, it has no binding legal backing in CGST Act, even after 55th GST Council meeting. The learned author seeks to analyse the legality of functional mandate requirements of this functionality.

1.Introduction

The Goods and Services Tax Network (GSTN) has introduced the "Invoice Management System" (IMS), to enable the taxpayers to reconcile the invoices and debit notes issued by suppliers of goods and services. This functionality was introduced for the purpose of correct computation of Input Tax Credit (ITC) for the relevant tax period. On the other hand, suppliers already have the facility to amend their invoices saved in their GSTR-1/IFF and the option of amendment of invoices through Form GSTR-1A is in hands. Thus, it become compulsory for recipient taxpayers to recompute their GSTR-2B before filing of GSTR-3B returns for every relevant period and no action is allowed after filing of GSTR-3B return of the relevant tax period. Further, certain limitations are already existing on the GST portal viz. lack of bulk upload utilities and offline reconciliation tools, only 500 documents are viewable at a time etc. However, micro and small taxpayers are not well equipped to follow the requirement of such a compulsion. Resultantly, the functionality, which was introduced to facilitate the taxpayers, has become mandatory for taxpayers to claim their ITC and the GST department is also rely on the same, while assessing the claim of ITC, even without any provision in the CGST Act in respect of this functionality. In this article, we will analyse the legality of the functional mandate of IMS.