Quick Summary
The Goods and Services Tax (GST) portal's recently launched Invoice Management System (IMS) is set to significantly decrease the number of notices issued over Input Tax Credit (ITC) discrepancies, potentially easing compliance burdens and reducing litigation, according to tax experts and Chartered Accountants. Currently, around 10% of all notices issued by the GST department relate to ITC discrepancies, primarily caused by mismatches in invoices filed by suppliers and those reported by recipien
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FAQ :
The IMS is a new feature on the GST portal that allows recipient taxpayers to manage invoices by accepting, rejecting, or keeping them pending. This aims to improve accuracy in Input Tax Credit (ITC) claims.
The IMS will be available on the GST portal starting from November 14, 2024.
Currently, about 10% of GST notices are for ITC discrepancies. The IMS will reduce these by providing a structured way to verify supplier invoices and reconcile ITC claims, addressing mismatches between suppliers and recipients.
Input Tax Credit (ITC) refers to the credit that taxpayers can claim on taxes paid on inputs used for making outward supplies. The IMS aims to streamline the process of claiming this credit.
Yes, the IMS is designed to align ITC entries with GSTR-2B. The first IMS-enabled GSTR-2B will be generated on or after November 14, 2024, for the October 2024 period.
The main benefit is a reduced compliance burden and less litigation, as the system aims to minimise errors and discrepancies in ITC claims, leading to smoother credit claims and better alignment with tax records.
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