Dear All,

In continuation to the trail mail, the Goods and Services Tax Network (GSTN) has issued a set of frequently asked questions (FAQs) on the Invoice Management System (‘IMS’) to provide clarification on certain queries. The key clarifications are summarized hereinbelow:

• IMS will be launched on the GST Portal on 1st October 2024 and taxpayers can commence taking actions on received invoices/ records from 14th October 2024
• All saved or filed original invoices/ records and their amendments by suppliers through GSTR 1/1A/IFF will be available to recipients for action on IMS. However, documents where Input Tax Credit (‘ITC’) is ineligible due to ‘Place of Supply’ (‘POS’) rules, or Section 16(4) of the CGST Act, such documents will not appear on IMS and will directly move to the ‘ITC Not Available’ section of GSTR-2B
• The following records will not be part of IMS but will flow directly to GSTR-2B:

1. 1. Documents from GSTR 5 and GSTR 6
   2. ICEGATE documents
   3. Reverse Charge Mechanism (‘RCM’) records
   4. Documents where ITC is ineligible due to POS rules and Section 16(4) of the CGST Act
   5. Documents where ITC must be reversed under Rule 37A

•  Multiple actions can be taken on an invoice/ record before filing of Form GSTR-3B and latest action will replace the previous ones. However, once the recipient files GSTR-3B, the latest action taken will be locked
•   If the original and amended record belongs to two different period of GSTR 2B return, then it is mandatory for the recipient to take action on original record and file the respective GSTR 3B before taking action on amended record (amended through GSTR-1/1A/IFF). If the recipient take action on amended record first, then system will not allow to save the action on IMS. If both the original records and amended records belong to same period of GSTR-2B return, the action taken on amended records will prevail
• In case a saved record is edited before filing of GSTR-1 by the supplier, the amended record will replace the saved document on IMS and the action taken by the recipient will be reset. Thus, the edited record will be available for fresh action on IMS. Similarly, if a document is deleted before filing of GSTR-1/1A/IFF by supplier then such document will be removed from IMS
• IMS has two different views:

1. 1. Recipient view : A taxpayer will have an “inward supply” view to see all the specified documents which are saved or filed by their supplier. These documents will be available for actions by the recipient
   2. Supplier view: A taxpayer will have an “Outward supply” view to see actions taken on all the specified documents by the recipients. (This feature will be made available shortly)

•  All the accepted/rejected records belonging to a particular GSTR-2B return period will be removed from IMS once GSTR-3B is filed for that period
• If the recipient makes any changes on the IMS dashboard after the draft GSTR-2B has been generated, it is mandatory to recompute GSTR-2B
• Taxpayers are advised to reconcile their records before filling of Form GSTR 1 for the tax period October 2024 for which due date is 11th November 2024 (i.e., for invoices belonging to FY 2023-24) The Taxpayer can accept/ reject the record on IMS after due verification. The ITC for the rejected record will not flow to GSTR 2B for October 2024 and such ITC shall lapse. However, recipients can change the action from ‘rejected’ to ‘accepted’ in IMS and recompute GSTR 2B at the time of filing GSTR-3B to take corresponding ITC in the GSTR 3B for October 2024
• POS can be changed by the supplier in the GSTR-1 subject to the time limit given under GST law. If POS is changed subsequently by supplier for an invoice for which ITC has been claimed, the recipient should reverse the ITC in corresponding Form GSTR-3B.