All You Need to Know About IMS in the GST Portal

The Invoice Management System (IMS) is a newly introduced feature on the GST portal aimed at simplifying the way businesses handle invoice verification and Input Tax Credit (ITC) claims. Launched in October 2024, IMS bridges the communication gap between buyers and sellers by allowing recipients to review, accept, reject, or keep invoices pending before including them in their GST returns. This system ensures that businesses can maintain accurate records, reduce discrepancies, and streamline the ITC claiming process effectively.

IMS works by automatically populating invoices filed by suppliers in the recipient’s IMS dashboard, where actions can be taken within a specified timeline. If no action is taken before filing GSTR-3B, invoices are deemed accepted and added to GSTR-2B. The system supports dynamic updates when suppliers modify invoices and offers special workflows for different taxpayer categories, such as QRMP taxpayers. Additionally, IMS maintains transparency by allowing sellers to view the recipient’s actions on invoices, helping both parties reconcile their records smoothly and comply with GST regulations efficiently.

Overall, the Invoice Management System represents a significant step forward in GST compliance and ITC management, providing businesses with greater control and clarity over their tax filings. By facilitating better communication between buyers and sellers and automating many aspects of invoice reconciliation, IMS reduces errors and enhances accuracy in tax returns. As businesses adapt to this feature, IMS is expected to improve the overall GST compliance ecosystem and contribute to a more transparent and efficient tax administration process.