Step-by-Step IMS Guide for Recipients and Suppliers

The Invoice Management System (IMS) on the GST portal helps both recipients and suppliers manage invoices, track discrepancies, and ensure accurate Input Tax Credit (ITC) claims. After the update of the supplier view for the facility, now both suppliers and recipients can access IMS to find relevant information. While recipients can take certain actions on the invoices available in the IMS dashboard, suppliers can only review the actions taken by the recipients. This IMS guide provides step-by-step instructions on using IMS effectively to stay GST compliant.

Using IMS as a Recipient

First, let us understand IMS guide for recipients to access the IMS dashboard on GST portal to review inward supplies.

Step 1: Log in to the GST Portal

1. Visit the GST portal and log in with your credentials.
2. Go to Services > Returns > Invoice Management System (IMS).
3. Click the ‘View’ button under Recipient Dashboard (Inward Supplies) to access your invoices.

Step 2: Navigating the Recipient Dashboard

Once you enter the recipient dashboard, classification of inward supplies happens in three sections:

1. All Other ITC:

• Includes regular B2B invoices filed by suppliers via GSTR-1, GSTR-1A, or IFF.
• Contains credit and debit notes linked to these transactions.

2. Inward Supplies from ISD (Input Service Distributor):

• Displays ITC distributed by an ISD, such as a corporate head office.

3. Import of Goods:

• Shows invoices related to imported goods, reported via Bill of Entry for IGST claims.

Click on any category to view the listed invoices. Once you have the list, you can also find any invoice or group them using the search and filter options. You can filter invoices as per supplier’s GSTIN, invoice type, status, source, and more.

Step 3: Taking Action on Invoices

Each invoice requires an action to ensure proper ITC management. The available actions are:

1. Accepting an Invoice

• Locate the invoice in the list.
• Click the ‘A’ (Accept) button.
• Press ‘Save’ to confirm your action.

Accepted invoices appear in the ‘ITC Available’ section of GSTR-2B and auto-populate in GSTR-3B.

2. Rejecting an Invoice

• Find the invoice with discrepancies.
• Click the ‘R’ (Reject) button.
• Press ‘Save’ to finalize rejection.

Rejected invoices will not be considered for ITC, and suppliers will need to make corrections in GSTR-1.

3. Keeping an Invoice Pending

• Select the invoice you want to defer.
• Click the ‘P’ (Pending) button.
• Press ‘Save’ to store it for later action.

Pending invoices won’t be included in GSTR-2B until they are reviewed and accepted in the future. Ensure action is taken before the CGST Section 16(4) deadline to avoid losing ITC eligibility.

4. Taking No Action on Invoices

In case you choose not to take any action on an invoice, it will be “deemed accepted” and considered for ITC in GSTR-2B.

5. Performing Bulk Actions

• Select multiple invoices using the checkboxes.
• Choose the desired action (Accept, Reject, Pending).
• Click ‘Save’ to apply the action to all selected invoices.

Step 4: Downloading IMS records in Excel Format

The entire IMS data available in section wise tables can be downloaded in the excel format to facilitate taxpayers to check and verify records offline. To do so, you simply need to click on “DOWNLOAD IMS DETAILS (EXCEL) button” at the bottom of the screen.

Step 5: Reset Action on IMS Invoices

You can also reset all the actions taken on your invoices and they will be available for new actions again. Simply select one or more invoices that you wish to reset and click the “RESET” button available at the bottom.

Step 6: Recomputing GSTR-2B

The GST system will automatically generate a draft GSTR-2B on the 14^th of every subsequent period. In case you take no action on invoices after the 14^th, you can treat it as the final GSTR-2B. However, if invoice actions are taken after the 14^th of the month, follow these steps to update your ITC claims:

• Navigate to the IMS dashboard.
• Click ‘Compute GSTR-2B’ to recalculate your available credit.
• A popup will be displayed, and you need to click “Agree and Continue” in this popup to recompute your GSTR-2B.

Step 7: Filing GSTR-3B Based on IMS Actions

Once all actions are completed in IMS:

• Accepted invoices will be auto-populated in GSTR-2B under the ‘ITC Available’ section.
• Open GSTR-3B, verify the entries, and make any necessary corrections.
• File the return before the due date.

IMS Guide for a Supplier

Suppliers can use this IMS guide to monitor recipient actions on their outward supplies and address any discrepancies.

Step 1: Accessing the Supplier Dashboard

• Log in to the GST portal.
• Navigate to Services > Returns > Invoice Management System (IMS).
• Click the ‘View’ button under Supplier Dashboard (Outward Supplies) to track invoices.

Step 2: Selecting Financial Year and Return Period

Select the financial year and return period for which you wish to review your supplies.

Step 3: Reviewing B2B Supplies

You will now get the list of all filed B2B invoices in GSTR-1/1A/IFF. For each type of B2B invoices, there will be number of invoices available in the IMS dashboard. Once you click any of the invoice type of hyperlink present on the number simultaneous to it, you will see the entire list for those types of invoices.

This list will include all details for the invoices in a tabular format, including GSTIN, tax details, return period, invoice status, and the filing status in GSTR-3B.

There is also an option to review the invoices rejected by the recipient here.

Step 4: Reviewing Invoice Status

Once inside the supplier dashboard, you will see a breakdown of invoices based on recipient actions:

1. Accepted Invoices: These invoices are confirmed by recipients and will reflect in their GSTR-2B as ITC available.
2. Rejected Invoices: These invoices have been declined by the recipient and require correction in the next GSTR-1 filing.
3. Pending Invoices: These invoices are under review by the recipient and may be accepted or rejected later.

To view details of a specific invoice, click on the invoice number to see recipient actions.

Step 5: Handling Rejected Invoices

Upon rejection of an invoice by the recipient, follow these steps to correct it:

1. Contact the recipient to understand the reason for rejection.
2. Make the necessary corrections in the upcoming GSTR-1/IFF.
3. Ensure the proper reflection of updated invoice details to avoid further rejections.

Step 6: Monitoring Pending Invoices

Pending invoices remain in the recipient’s dashboard until they take action. It’s advisable to:

• Follow up with recipients to expedite review.
• Keep track of pending invoices that may impact working capital and ITC availability.

Step 7: Downloading Invoice Status Reports

To monitor invoice status and track recipient actions, suppliers can download reports for reconciliation purposes:

1. Click on the ‘Download’ button on the dashboard.
2. Select Excel or CSV format.
3. Use the downloaded report to cross-check records with internal data.

Step 8: Impact of IMS Actions on GSTR-3B

Recipient actions directly impact supplier tax liability:

• Accepted Invoices: No further action required.
• Rejected Invoices: Needs correction and re-uploading in GSTR-1. Supplier can rectify invoices through amended return- GSTR-1.
• Pending Invoices: Will not impact GSTR-3B until accepted or rejected.

Rejected invoices may result in additional liabilities in the subsequent GSTR-3B filing if not corrected promptly.

Key Considerations for Suppliers

1. Timely Amendments: Ensure addressing invoice corrections before GSTR-1 filing to avoid discrepancies.
2. Regular Monitoring: Frequently check the IMS dashboard to track recipient actions and avoid last-minute surprises.
3. Coordination with Recipients: Engage with buyers to resolve rejected or pending invoices proactively.
4. Sequential Filing Rule: GSTR-2B of a return period will only generate after successful generation of the previous GSTR-3B.

Conclusion to IMS Guide

By following the steps above, both suppliers and recipients can effectively use the IMS guide for the GST portal to manage invoices, ensure proper ITC claims, and maintain compliance with GST regulations. While IMS facility is certainly a step forward towards streamlined GST compliance by the government authorities, we still await a few updates in the IMS dashboard to further simplify the ITC claim process.

However, GSTrobo^® recognised the importance of these updates and have launched an IMS dashboard that even lets you add remarks for rejection or pending invoices. You can also ingest your purchase register in the GSTrobo^® IMS dashboard to avoid manual reconciliation of purchases and supplies filed by your suppliers. Interested to know more? Contact us for a demo!