The recently introduced Invoice Management System (IMS) on the GST portal is expected to decrease the volume of notices related to Input Tax Credit (ITC) discrepancies in returns and reduce tax-related litigation, as noted by tax experts and chartered accountants.
According to experts, about 10% of total notices from the GST department are concerned with ITC issues. Invoice Management System (IMS) a new feature on the GST platform, now allows recipient taxpayers to accept, reject, or hold invoices submitted by their supplier taxpayers.
Experts explained that this tool will be available on the GST portal starting November 14, 2024. It’s anticipated to reduce errors, improve reconciliation processes, and limit ITC discrepancy notices.
Previously, no such mechanism was there in practice to ease the process, leading to issues such as discrepancies between GST and Income Tax entries and subsequent notices. Tax professionals indicated that mismatches between supplier invoices and recipient returns have long been a significant hurdle for taxpayers when claiming GST ITC.
Tax professionals noted that while provisions for matching ITC claims existed from GST’s inception, technical challenges initially prevented implementation.
Seven years later, now the IMS finally addresses this need, enabling taxpayers to receive credit and file returns only after opting to accept, reject, or hold the credit shown in Form 2B. The first GSTR-2B report utilizing IMS will cover October 2024 and will be generated on or after November 14, 2024.
Recently, the government launched the new GST IMS (Invoice Management System) to help users manage their invoices more easily. This facility was introduced after a significant delay, and no other company had launched it before.
However, SAG Infotech was the first Company to provide users with an IMS dashboard facility in Gen GST Software, says CA Amit Gupta. This innovative feature enables users to manage their invoices and view them in pending, accepted, and rejected sections. Additionally, it allows users to compare invoice data with the book ITC.
