Invoice Management System (IMS) under GST
The Goods and Services Tax Network is constantly streamlining its GST portal and introducing new features to simplify compliance and auditing for taxpayers. The latest is the Invoice Management System (IMS), which went live on 14th October 2024. It aims to help significantly manage the process of ITC Claims. The new IMS feature was implemented within the GST portal from 14th October 2024.
Key Features of Invoice Management System (IMS)
Communication functionality: The invoice management system is a communication functionality within the GST portal that connects suppliers and recipients through invoice documentation and a single dashboard interface.
Single-window to process auto-generated GSTR-2B: Recipient taxpayers with multiple inward suppliers can manage all invoices submitted by all suppliers and auto-generate GSTR-2B with minimal interventions. The taxpayer must select either ACCEPT, REJECT or PENDING to finalise auto-generated ITR reporting.
Zero compliance burden: Any new functionality or feature within the GST portal often worries taxpayers about the latest compliance workload. However, IMS will not create any additional compliance burden. If a recipient fails to respond to an invoice, it will be automatically considered 'deemed accepted'. IMS will simplify ITC reporting by streamlining the inward invoice management process.
Summary view of inward invoices and actions: The IMS dashboard offers a summary view of all invoices and actions taken for each invoice. This can help management decision-making and auditing processes.
Suppliers can now easily amend submitted invoices: The new functionality also makes it easier for suppliers to amend the saved invoices through GSTR-1A.
Benefits of Invoice Management System
When rolled out, IMS is expected to offer multiple benefits to small and large businesses.
Precision audit: IMS will allow auditors to check each invoice thoroughly without requiring them to access multiple interfaces, helping to avoid audit errors.
Minimal error in GSTR-3B: The system offers a summary view of all inward invoices. So, taxpayers do not need to bother about missing out on any invoice before filing GSTR-3B.
Less complication with pending invoices: Pending invoices get carried forward to upcoming tax periods without affecting GSTR-2B and 3B.
Available for QRMP taxpayers: The new invoice management system will be helpful for small businesses and is also available for QRMP taxpayers. However, it will not automatically populate GSTR-2B for months 1 and 2 in a quarter. For them, GSTR-2B will be generated quarterly.