Invoice Management System (IMS) on GST Portal — How to Use for ITC Claims

The Invoice Management System (IMS) is a new GST portal feature (introduced in October 2024) that allows recipients (buyers) to view all inward supply invoices filed by their suppliers in GSTR-1/IFF, and take actions — Accept, Reject or Keep as Pending — on each invoice. The accepted invoices form the basis for GSTR-2B and eligible ITC claims. Here is the complete guide to using IMS effectively.

What is IMS and Why Was It Introduced?

Earlier, recipients could only view supplier invoices in auto-populated GSTR-2A/2B but could not flag discrepancies to the portal. IMS gives recipients active control — to formally accept invoices they agree with, reject incorrect invoices, and park disputed ones as "Pending." This reduces ITC mismatches and potential audit issues.

How IMS Works — The Three Actions

• Accept: You agree with the invoice — it becomes part of your GSTR-2B and is eligible for ITC. Once accepted, it's locked for that GSTR-3B filing period.
• Reject: You reject the invoice — it will NOT appear in your GSTR-2B. The rejected invoice goes back to the supplier's IMS dashboard for their information. The supplier can amend and resubmit in a subsequent period.
• Pending: You are unsure about the invoice — it stays in IMS without appearing in GSTR-2B. No ITC claimed for this period. You can Accept or Reject it in a future period.

What Happens If You Don't Take Action?

If you don't explicitly Accept, Reject or Pend an invoice, the system defaults to "Deemed Accepted" — and the invoice is included in GSTR-2B. This maintains backward compatibility for businesses that don't actively use IMS.

IMS and GSTR-2B

GSTR-2B is now generated based on IMS actions taken by the recipient (for those using IMS) or on the default deemed-acceptance basis (for those not using IMS). The ITC available in GSTR-3B Section 4A is based on GSTR-2B.

Practical Benefits of Using IMS

• Reduces ITC mismatch notices from the GST department
• Provides a formal mechanism to flag incorrect supplier invoices
• Creates a documented audit trail of ITC acceptance decisions
• Helps reconcile purchase register with supplier invoices before ITC claim

Accessing IMS

IMS is available in the GST portal under: Services → Returns → Invoice Management System. Each invoice from suppliers is visible with details including GSTIN, invoice number, date, taxable value and GST amount.

Conclusion

The Invoice Management System transforms ITC management from a passive auto-population to an active acceptance process — giving businesses stronger control over their GST compliance. SPOTON assists businesses in setting up and using IMS effectively as part of monthly GST compliance. Contact us for expert GST compliance services.