GSTN released an advisory on September 3, 2024, implementing a new feature call Invoice Management System (IMS) under the portal to assist the taxpayers to correct and amend the invoices with suppliers conveniently. This new communication process will help the taxpayers to reconcile their invoices received with the invoices that have been issued to the suppliers, thus ensuring that the right amount of Input Tax Credit (ITC) is claimed. The IMS enables the recipient taxpayers to either accept, reject or defer an invoice for further action and thus evading the errors in availing ITC and claim reconciliation.
The 54th GST Council Meet took note of the agenda on the enhancements being made to the existing GST return architecture. These enhancements include the introduction of a Reverse Charge Mechanism (RCM) ledger, an Input Tax Credit Reclaim ledger and an Invoice Management System (IMS). Taxpayers would be given the opportunity to declare their opening balance for these ledgers by 31st October 2024.
IMS will allow the taxpayers to accept, reject, or to keep the invoices pending for the purpose of availment of Input Tax Credit. This will be an optional facility for taxpayers to reduce errors in claiming input tax credit and improve reconciliation. This is expected to reduce notices issued on account of ITC mismatch in the returns.
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