The GST Invoice Management System (IMS) is a dashboard feature on the GST portal launched on October 1, 2024, that allows recipients to accept, reject, or keep pending the invoices and credit/debit notes filed by their suppliers in GSTR-1. The IMS acts as an intermediary layer between supplier filings and the recipient’s GSTR-2B, ensuring that only verified invoices are included in the Input Tax Credit computation. Not utilising IMS increases the risk of notices from tax authorities due to potentially over-claimed ITC.
IMS Workflow
| Step | Action | Who Performs | Impact on GSTR-2B |
| 1 | Supplier files GSTR-1 with invoice details | Supplier | Data becomes available in the recipient’s IMS |
| 2 | Recipient logs into the IMS dashboard | Recipient | View all pending invoices and CDNs |
| 3 | Recipient accepts the invoice | Recipient | Invoice included in GSTR-2B for ITC |
| 4 | The recipient rejects the invoice | Recipient | Invoice excluded from GSTR-2B; supplier notified |
| 5 | The recipient keeps the invoice pending | Recipient | Invoice held; not included in the current GSTR-2B |
| 6 | GSTR-2B is generated on the 14th of the following month | System | Only accepted invoices flow into GSTR-2B |
| 7 | Recipient files GSTR-3B claiming ITC | Recipient | ITC claimed based on the accepted GSTR-2B data |
Key Changes from October 2025
Starting October 1, 2025, the GSTN has announced that ITC details will no longer be auto-populated into GSTR-3B from GSTR-2B. Taxpayers must manually capture the ITC data through the IMS for it to appear in their GSTR-3B.
This means recipients who do not actively use IMS to accept or reject invoices will find their GSTR-3B ITC fields empty. They must log into IMS, process all pending invoices, and then file GSTR-3B with the captured ITC data.
This change makes IMS usage effectively mandatory for all taxpayers claiming ITC. Non-utilisation of IMS will result in the inability to claim ITC in GSTR-3B and an increased risk of demand notices due to discrepancies between claimed and available ITC.
How IMS Affects GSTR-2B and ITC Claims
| Scenario | Before IMS (Pre-October 2024) | After IMS (Post-October 2024) |
| Supplier files the correct invoice. | Auto-included in GSTR-2B | Included after the recipient accepts in IMS |
| Supplier files an incorrect invoice. | Auto-included (recipient must manually identify and exclude) | Recipient rejects in IMS; excluded from GSTR-2B |
| The invoice is disputed between the parties | Included in GSTR-2B; manual adjustment needed | Kept pending in IMS until the dispute is resolved |
| The supplier issues a credit note. | Auto-reflected in GSTR-2B | The recipient accepts or rejects in IMS. |
| No action taken by the recipient | Not applicable | Deemed accepted after the prescribed period |
If a recipient takes no action on an invoice in IMS, the system treats it as deemed accepted after a prescribed period. However, taxpayers are strongly advised to actively review and process all invoices to maintain control over their ITC claims and avoid accepting incorrect or fraudulent invoices.
Benefits of the Invoice Management System
The IMS provides several advantages for GST compliance:
Reduced ITC discrepancies. By allowing recipients to validate invoices before they enter GSTR-2B, IMS significantly reduces the gap between claimed ITC and available ITC. This minimises demand notices triggered by GSTR-2B vs GSTR-3B mismatches.
Dispute resolution mechanism. The reject and pending options give recipients a structured way to handle disputed invoices with suppliers. Previously, recipients had to track and adjust disputed invoices outside the GST portal manually.
Fraud prevention. IMS helps recipients identify and reject invoices from suppliers they have not transacted with or invoices with incorrect values. This is particularly important for preventing fraudulent ITC claims based on fake invoices.
Supplier accountability. When a recipient rejects an invoice, the supplier is notified through the portal. The supplier must then take corrective action through GSTR-1A or in the next period’s GSTR-1 amendment section.
Reconciliation accuracy. IMS data provides a clear, verifiable trail of accepted and rejected invoices, simplifying the monthly reconciliation between GSTR-2B and the purchase register.
Accessing IMS on the GST Portal
Step 1. Log in to the GST portal using your GSTIN and credentials.
Step 2. Navigate to Services> Returns> Invoice Management System. The IMS dashboard displays all pending invoices and CDNs from suppliers.
Step 3. Use the filters to sort by supplier GSTIN, invoice date, amount range, or document type (invoice, credit note, debit note).
Step 4. Review each document. Click Accept to include it in GSTR-2B, Reject to exclude it, or Keep Pending for later review.
Step 5. After processing all documents, the accepted data flows into the next GSTR-2B generation cycle (14th of the following month).
Step 6. Reconcile the accepted IMS data with your purchase register before filing GSTR-3B.
IMS and GSTR-1A Connection
When a recipient rejects an invoice through IMS, the supplier receives a notification. The supplier can then correct the invoice details using GSTR-1A (if GSTR-3B for the same period has not been filed) or through the amendment section of the next period’s GSTR-1.
The GSTN has announced that from July 2025, hard-locking will be implemented for auto-filled sales liability data in GSTR-3B. Suppliers will no longer be able to adjust the values in Table 3 of GSTR-3 B manually. This makes GSTR-1A the primary mechanism for correcting supplier-side data before it impacts GSTR-3B.
Key Terms
• Invoice Management System (IMS): A dashboard on the GST portal allowing recipients to accept, reject, or keep pending supplier-filed invoices and credit/debit notes before they flow into GSTR-2B
• Deemed Acceptance: The automatic acceptance of invoices in IMS when the recipient takes no action within the prescribed period
• GSTR-2B: The auto-generated statement of ITC available to a recipient, populated from supplier GSTR-1 filings filtered through IMS actions
• Hard-Locking: The planned restriction on manual editing of auto-populated GSTR-3B fields, forcing reliance on IMS-validated data for ITC claims
• Credit/Debit Note (CDN): Documents issued by suppliers to reduce (credit note) or increase (debit note) the value of an original invoice, processed through IMS
| Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Consult a qualified tax professional for advice specific to your situation. |
Managing Your ITC Through IMS?
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Frequently Asked Questions
Q1: What is the Invoice Management System in GST?
IMS is a dashboard on the GST portal launched on October 1, 2024, that allows recipients to accept, reject, or keep pending invoices filed by suppliers in GSTR-1. Only accepted invoices flow into GSTR-2B for ITC claims.
Q2: Is IMS usage mandatory for all taxpayers?
From October 1, 2025, IMS will be mandatory, as ITC data will no longer auto-populate in GSTR-3B from GSTR-2B. Taxpayers must manually capture ITC through IMS for it to appear in their GSTR-3B filing.
Q3: What happens if I reject an invoice in IMS?
The rejected invoice is excluded from your GSTR-2B and will not be available for ITC claims. The supplier receives a notification and must correct the invoice through GSTR-1A or the next period’s GSTR-1 amendment.
Q4: What happens if I take no action on an invoice in IMS?
Invoices on which no action is taken are deemed accepted after a prescribed period. However, taxpayers are advised to actively process all invoices to avoid accepting incorrect or fraudulent invoices.
Q5: How does IMS help prevent fraudulent ITC claims?
IMS allows recipients to review and reject invoices from suppliers they have not transacted with or invoices with incorrect values. This prevents fraudulent ITC claims based on fake invoices that previously auto-populated into GSTR-2B.
