The IMS will allow taxpayers to accept, reject or maintain pending invoices directly through the portal.
How the IMS will work
Once a supplier saves an invoice in their GSTR-1, It will appear in the recipient taxpayer’s IMS dashboard.
The recipient can then choose whether to accept, reject or leave the invoice pending.
Accepted invoices will automatically become part of the recipient’s GSTR-2B as eligible ITC, which will then be populated in their GSTR-3B for the respective tax period.
If no action is taken on an invoice, it will be considered as ‘accepted’ and will be included in GSTR-2B.
This system will ensure that only genuine and verified invoices contribute towards ITC claims, reducing errors and discrepancies in tax returns.
Benefits for taxpayers
The IMS offers several advantages to taxpayers:
By reviewing each invoice before it becomes part of their ITC claims, taxpayers can ensure accuracy and avoid problems during audits.
Taxpayers can take action on invoices at any time before filing their GSTR-3B.
Outstanding invoices may be addressed in future tax periods.
For those using the Quarterly Return Monthly Payment (QRMP) scheme, IMS will integrate with their existing processes, generating GSTR-2B on a quarterly basis, as per their filing schedule.
What this means for software companies and tax authorities
The introduction of IMS means a change in the tax filing process, requiring software companies to adapt their systems to align with this new functionality.
For tax authorities, IMS provides a more transparent and reliable system for monitoring ITC claims, which could lead to future automation opportunities.
Features such as AI-powered analytics and automated dispute resolution could become possible.
Rajat Mohan, Director, MOORE Singhi, said the new GSTN notification signals a comprehensive overhaul of the tax filing mechanism.
“The transition can be complex, but adapting to the changing regulatory environment is crucial,” he said.
Mohan also stressed that this move could pave the way for future advancements in the GST systemincluding AI integration and improved fraud detection.
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