The Invoice Management System (IMS) went live from the October 2024 tax period. It lets you, as the buyer, accept, reject or keep pending the invoices your suppliers report in GSTR-1, GSTR-1A or IFF. Several changes since then make it more practical. This guide brings them together.

What has not changed

GSTN has clarified a few points that were widely misreported:

  • ITC still flows automatically from GSTR-2B into GSTR-3B. IMS does not change that.
  • GSTR-2B is still generated automatically on the 14th of every month, whether or not you act in IMS.
  • You can act in IMS after GSTR-2B is generated, up to filing GSTR-3B, and recompute GSTR-2B if needed.

1. Keeping credit notes pending (from the October 2025 period)

You can keep certain records pending for one tax period (one month for monthly filers, one quarter for quarterly filers):

  • credit notes, or upward amendments of credit notes
  • downward amendment of a credit note where the original was rejected
  • downward amendment of an invoice or debit note, only where the original was accepted and GSTR-3B has been filed
  • downward amendment of an e-commerce operator document, on the same condition

The period is counted from when the supplier reported the document.

2. Reversing only the ITC you actually took

If you accept a credit note but never claimed ITC on the original invoice, no reversal is needed. If you claimed it partly, you reverse only that part. IMS lets you enter the actual amount to be reversed, in full or in part, for the records listed above. You can also use it where you already reversed the credit earlier.

3. Remarks

You can add an optional remark when you reject a record or keep it pending. The remark shows in GSTR-2B and on the supplier's dashboard so they can correct it.

4. Imports: Bills of Entry in IMS (from the October 2025 period)

A new "Import of Goods" section shows your Bills of Entry (BoE), including imports from SEZs, so you can act on each one. If you take no action, a BoE is treated as accepted. Your draft GSTR-2B is built on the 14th of the next month based on these actions.

5. The IMS offline tool

An Excel-based offline tool lets you act on invoices one by one or in bulk, which is useful if you receive hundreds of invoices a month.

Practical tips

  1. Review IMS before the 14th, so GSTR-2B reflects your decisions.
  2. Use "pending" for credit notes you are still checking, but remember the one-period limit.
  3. When accepting a credit note, enter the real ITC to reverse. Don't reverse credit you never took.
  4. Check the Import of Goods section every month, because unchecked BoEs are accepted automatically.

Official sources