NEW DELHI: The GST Network will introduce the Invoice Management System (IMS) on October 1 to assist taxpayers in reconciling their invoices with those issued by their suppliers, ensuring they can accurately claim the correct Input Tax Credit (ITC).
With IMS, taxpayers can effectively manage invoice corrections and amendments with their suppliers through the portal. “This will also facilitate taxpayers to efficiently address invoice corrections/amendments with their records/invoices vis-a-vis issued by their suppliers for availing the correct ITC,” GSTN stated.
The IMS will enable recipient taxpayers to accept, reject, or keep invoices pending within the system for future review. This feature will be accessible to taxpayers starting October 1 on the GST portal.
According to Rajat Mohan, Executive Director, MOORE Singhi, in the short term, this advisory could pose a considerable challenge for software companies, which will need to realign their processes to integrate with the new system. The transition may be complex, but it is necessary to adapt to the evolving regulatory environment.
“By maintaining a detailed record of all actions taken on each invoice, the Integrated Management System (IMS) creates a robust audit trail that is invaluable during GST audits. This feature provides tax authorities with clear evidence of the recipient’s due diligence in managing ITC claims, potentially simplifying the scrutiny process,” Mohan added.
Additionally, the IMS could pave the way for future automation and AI integration, such as AI-driven predictive analysis for ITC claims, automated dispute resolution for invoice discrepancies, and enhanced fraud detection mechanisms.
To implement this advisory, both state and central governments will need to amend and reissue the relevant tax rules and forms within their statutory frameworks,