Tax professionals body asked the government to make the introduced Invoice Management System (IMS) on the Goods and Services Tax (GST) portal more facilitated. To reduce the errors and lessen the issuance of notices they have asked to incorporate the features to add and edit the invoices before final submission.
The IMS launched in November 2024 permits recipient taxpayers to accept, reject, or mark invoices as pending, based on the data furnished by suppliers.
Amendment Need in IMS
The President of the Madhya Pradesh Tax Law Bar Association emphasizing the limitations of the IMS, remarked, “The earlier GSTR-2 form allowed users to accept, reject, modify, and add invoices. The current IMS, however, restricts taxpayers to just three options: accept, reject, or pending. This creates a dependency on suppliers for invoice corrections, which not only delays processes but also leads to practical difficulties.”
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As per the tax professionals without the ability to edit or add the invoices the taxpayers are left helpless to discrepancies, augmenting their reliance on suppliers’ timelines for rectifications.
Resolving Input Tax Credit (ITC) Issues
It was marked by the Chartered accountants that nearly 10% of all notices issued via the GST department are pertinent to the ITC discrepancies. This shows that there is a need for a stringent system so that it can manage such problems.
Rectifying the IMS can improve account reconciliation, lessening the chance of error-related notices.
As per the tax expert inducing the options to edit and add invoices in the IMS shall help the taxpayer empower, and improve compliance, which directed to a more clear and efficient tax environment. The government should regard such suggestions to ensure the system satisfies the user’s needs.
Advocating for a User-Friendly GST Portal
It was cited by the association that integrating user feedback towards the Invoice Management System (IMS) development can transform the GST portal into an efficient and user-friendly system. The same in turn shall lessen the administrative loads and promote effective compliance.
With the efforts of the government to refine the GST structure the tax structure presumes these changes are important to ensure a facilitated and more effective tax system for all the people pertinent to the system.
