The Invoice Management System (IMS), introduced on the GST portal on October 14, 2024, allows recipient taxpayers to manage their invoices by accepting, rejecting, or keeping them pending. This new system aims to streamline input tax credit (ITC) management for recipients and enhance transparency between suppliers and recipients.
To further support suppliers, the GST Network (GSTN) has now introduced the Supplier View in IMS, which enables suppliers to see the actions taken by recipients on their invoices. Here’s an overview of the Supplier View functionality, its benefits, and key points for suppliers.
Overview of the Invoice Management System (IMS)
The IMS allows recipient taxpayers to take specific actions on invoices saved or filed by their suppliers in GSTR-1/1A/IFF:
- Accept: Acknowledges the invoice as accurate, making it eligible for ITC.
- Reject: Denies the validity of the invoice, preventing ITC claims on it.
- Keep Pending: Puts the invoice on hold for further verification or clarification.
These actions will influence the GSTR-2B statement of the recipient, which reflects the ITC eligibility based on accepted invoices.
Introduction of Supplier View in IMS
To foster transparency, the GSTN has launched the Supplier View within IMS. Through Supplier View, suppliers can now observe the actions taken by recipients on the invoices they have reported in GSTR-1/1A/IFF. This feature provides suppliers with insight into whether their invoices were accepted, rejected, or kept pending by recipients.
This enhancement aims to:
- Help Suppliers Track Invoice Status: Suppliers can monitor how recipients respond to their invoices, gaining clarity on which invoices are accepted and eligible for ITC in the recipient’s GSTR-2B.
- Reduce Discrepancies: By seeing recipient actions, suppliers can better understand potential discrepancies, reducing the chance of misunderstandings and compliance issues.
- Identify Any Mistakes: In case of incorrect rejections or pending statuses, suppliers can proactively communicate with recipients to resolve any issues.
Exceptions in IMS for Supplier View
Certain records/invoices are not available for action in IMS, meaning recipients cannot accept, reject, or keep them pending. However, these records are still visible to suppliers under Supplier View with the status marked as “No Action Taken”. These exceptions include:
- Invoices Ineligible for ITC:
- Invoices where the Place of Supply (POS) rule restricts ITC eligibility.
- Invoices disallowed under Section 16(4) of the CGST Act.
- Reverse Charge Mechanism (RCM) Supplies:
- Records for supplies that attract RCM are not actionable in IMS, though they remain visible in Supplier View.
Suppliers are encouraged to review the “No Action Taken” status on these records, which serve only as a reference and have no impact on the recipient’s ITC claim.
Flexibility for Recipients to Change Actions
To accommodate changes, IMS allows recipients to modify their actions (e.g., changing from “rejected” to “accepted” or vice versa) on an invoice up until they file GSTR-3B for the corresponding tax period.
If a recipient changes an action after the generation of GSTR-2B, they must click the GSTR-2B recompute button to update their GSTR-2B based on the revised actions. This process ensures that the recipient’s GSTR-2B reflects their final actions on IMS, providing accurate information on ITC eligibility in GSTR-3B.
How to Use the Supplier View Feature in IMS: A Step-by-Step Guide
| Step | Description |
|---|---|
| 1. Log in to GST Portal | Access the GST portal and navigate to the IMS section. |
| 2. Open Supplier View | Select the “Supplier View” functionality to view recipient actions. |
| 3. Review Actions on Invoices | Check the status (Accepted, Rejected, Pending) assigned by recipients to each invoice. |
| 4. Identify “No Action Taken” Invoices | Note any invoices marked “No Action Taken” due to ITC restrictions or RCM applicability. |
| 5. Communicate with Recipients | If discrepancies are noted, contact the recipient to discuss any potential issues. |
Benefits of Supplier View in IMS
The Supplier View in IMS provides suppliers with valuable insights into the handling of their invoices, promoting collaboration and reducing errors. Key benefits include:
- Enhanced Transparency: Suppliers can view the exact status of their invoices and take proactive measures to address any potential issues.
- Improved Communication: In case of discrepancies or incorrect rejections, suppliers can directly contact recipients to resolve matters.
- Reduced Compliance Risks: With visibility into recipient actions, suppliers can better ensure compliance and prevent misunderstandings that may affect their GSTR filings.
The launch of the Supplier View feature in the IMS marks an important step toward increased transparency in the GST system. By enabling suppliers to track actions taken by recipients on their invoices, the GSTN aims to minimize disputes, enhance compliance, and streamline the input tax credit process. During this initial implementation phase, suppliers are advised to actively monitor recipient actions through Supplier View and engage in open communication to resolve any discrepancies.
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