"Get ready to swipe left or right on your invoices—GST's IMS is going live on October 1st.
GST Update: GSTN Advisory with regards to introduction of Invoice Management System (IMS)
Starting October 1st, the GSTN is rolling out the Invoice Management System (IMS), a significant enhancement designed to give taxpayers better control over their Input Tax Credit (ITC) claims.
What is the IMS?
The IMS is a new feature on the GST portal that allows recipient taxpayers to manage their invoices more effectively. You will now have the ability to accept, reject, or keep invoices pending, with only accepted invoices being reflected in your GSTR-2B.
Potential Challenges:
- Credit Note Handling: The system's strict rules around credit notes, especially the inability to keep certain ones pending, could lead to disputes and financial losses.
- Timing Differences : Misalignment between supplier and recipient actions might result in incorrect ITC claims and increasing the risk of penalties.
-Different Practices: Some recipients issuing a tax invoice upon returning goods, while suppliers issue a credit note to account for the return. The timing and different approaches for a single transaction may lead to potential misalignment.
Key Action Points:
1. Communicate with Suppliers: Ensure both parties are aligned on invoice and credit note handling to avoid disputes.
2. Monitor Your IMS Dashboard Regularly: Stay on top of your invoices and take timely action.
3. Prepare for Recomputation of GSTR-2B : Be ready to adjust your GSTR-2B if actions are taken after the draft generation.
Stay informed and ensure your teams are prepared for these upcoming changes!
Click here to read the complete advisory on IMS.
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