1. Integration with GSTR-1, IFF, GSTR-5, and GSTR-6: Invoices reported in GSTR-1, Invoice Furnishing Facility (IFF), GSTR-5, and GSTR-6 are available in the IMS for recipient taxpayers to manage.
2. Actionable Options for Recipients: Taxpayers can now:
   
   
   • Accept the invoice
   • Reject the invoice
   • Keep the invoice pending for future action These actions can be taken from the time the supplier saves records in GSTR-1, IFF, or GSTR-1A until the recipient files the corresponding GSTR-3B.
3. Deemed Acceptance: If no action is taken, the invoice is deemed accepted, and the eligible ITC will reflect in GSTR-2B.
4. GSTR-2B Generation: GSTR-2B will be generated monthly, except for taxpayers under the QRMP (Quarterly Return Monthly Payment) scheme. Only invoices accepted in the IMS will be included in the GSTR-2B. Changes made after the 14th of the month will require recipients to recompute their GSTR-2B.
5. Pending Invoices: Pending invoices will be excluded from GSTR-2B until they are accepted. These can be utilized later, subject to Section 16(4) of the CGST Act.
6. Supplier's Visibility: Suppliers will be able to see the actions taken by recipients on their invoices within the IMS, providing better transparency.

1. Invoices Reported by Suppliers: All invoices reported in GSTR-1, IFF, GSTR-5, and GSTR-6 will be displayed in the recipient’s IMS dashboard.
2. Recipient Actions: Recipients can take action (accept, reject, or keep invoices pending) to determine whether the invoice will be included in GSTR-2B as eligible ITC
3. GSTR-2B Generation: A draft GSTR-2B will be generated on the 14th of the next month, reflecting accepted invoices.
4. GSTR-2B Generation: GSTR-2B will be generated monthly, except for taxpayers under the QRMP (Quarterly Return Monthly Payment) scheme. Only invoices accepted in the IMS will be included in the GSTR-2B. Changes made after the 14th of the month will require recipients to recompute their GSTR-2B.
5. No Action Taken: If no action is taken by the recipient, the invoice is automatically accepted and included in the GSTR-2B.
6. Finalization: After filing GSTR-3B for a given period, no further actions on invoices for that period will be possible.

Certain supplies do not flow through IMS and are directly reflected in GSTR-3B:

• Inward Reverse Charge Mechanism (RCM) Supplies: Reported in Table 4B of GSTR-1 or IFF.
• Non-eligible ITC Supplies: Supplies for which ITC is ineligible under Section 16(4) or Place of Supply rules.

• Mandatory Recompute of GSTR-2B: If any action is taken after the draft GSTR-2B generation, recomputing GSTR-2B is mandatory before filing GSTR-3B.
• Sequential GSTR-2B Generation: GSTR-2B for a return period will only be generated if GSTR-3B for the previous return period is filed.
• Liability Adjustment: Rejected invoices will adjust the supplier’s liability in their next GSTR-3B filing.

The Invoice Management System (IMS) marks a significant enhancement in GST compliance, providing recipient taxpayers with greater control and transparency over their invoices and ITC management. By taking timely action on invoices, taxpayers can avoid discrepancies and ensure efficient tax reporting. Taxpayers are encouraged to familiarize themselves with the new system and take advantage of this improved functionality for seamless compliance.

For any assistance or guidance on using IMS or GST compliance, feel free to reach out to 10X Consulting for support.