Curious about how to streamline your Invoice Management System?
We recently hosted a webinar featuring Hardik Panchal and Tapas Ruparelia, who tackled the top questions and challenges on the IMS.
Dive into our blog for key insights and expert advice from the session!
Q: Will IMS include all fields currently appearing in GSTR-2B?
A: Yes, IMS will encompass all the fields necessary for identifying and taking action on invoices.
Q: Will there be any changes to the GSTR-2B process if a taxpayer does not use IMS?
A: No, if IMS is not used, all invoices, credit notes, and debit notes will be automatically deemed accepted and populated in GSTR-2B.
Q: If I reject an invoice on IMS, can I provide a reason for the rejection? What if I don’t?
A: Currently, there is no option to provide a reason for rejecting an invoice. Vendors may contact you to inquire about the rejection.
Q: Can we modify the RCM auto-populated value in the GSTR-3B return?
A: Yes, the RCM auto-populated values in GSTR-3B can be edited up until the return is filed.
Q: Do I need to reverse the ITC for POS issues or if ITC is time barred, which is auto-populated in GSTR-3B?
A: No separate reversal is needed as it will be auto-populated in Table 4D(2) of GSTR-3B.
Q: When will this system be implemented?
A: According to the advisory, the system is expected to be implemented starting October 1st.
Q: Do I have to accept invoices one by one, or is there an option for bulk acceptance since there will be around 1,000 to 2,000 invoices every month?
A: IMS and the Cygnet portal both offer options for bulk actions, allowing you to process multiple invoices at once.
Q: If the recipient rejects an invoice, will the supplier’s liability be reduced?
A: No, the supplier’s liability will not be reduced if the recipient rejects the invoice.
Q: If there is an error while raising an invoice and it is reversed through a Credit Note (CN), should the recipient reject both the invoice and the CN?
A: Yes, the recipient should reject both the invoice and the CN.
Q: How should ITC that has been reversed under temporary reversals in Table 4(b)(2) be handled in IMS?
A: In the future, unreconciled invoices should be kept pending or rejected in IMS. Only limited cases, such as differential amounts, need to be mentioned in Table 4(b)(2).
Q: Sometimes we receive the CN copy after 2-3 months, but it is shown in IMS. Can we keep it pending until we receive and confirm the CN copy?
A: No, credit notes cannot be kept pending in IMS.
Q: Can invoices be amended after filing GSTR?
A: Yes, invoices can be amended after filing GSTR 1.
Q: What types of actions can be taken in IMS?
A: Actions that can be taken include accepting, rejecting, or marking invoices as pending. No action will be considered as acceptance.
Q: What is the duration for no-action cases before they are automatically posted to GSTR-2B?
A: No time limit is prescribed for carrying forward no-action cases. They will remain pending until action is taken.
Q: If I reject a Credit Note, will there be any interest implications in the subsequent month?
A: No, rejecting a Credit Note should not have any interest implications.
Q: Is there a timeline for when invoices saved as pending should be addressed?
A: No specific timeline has been mentioned. However, actions should be taken before the invoices become time-barred.
Q: Can changes be made in IMS after filing GSTR-3B?
A: Any changes made after filing GSTR-3B will be reflected in the GSTR-2B for the following month.
Q: Where can I find IMS?
A: IMS will be available on the GST portal. Additionally, it would also be available on the Cygnet portal.
Q: If the recipient rejects the invoice, what happens to the supplier?
A: The rejection will appear in the supplier’s IMS, with full implementation expected in phase 2.
Q: Can previously taken actions be amended? For example, if I accepted an invoice on the 13th and want to reject it on the 14th, is this possible?
A: Yes, changes can be made. However, if the GSTR-2B has already been generated, it will need to be regenerated after making amendments.
Q: If a buyer rejects a debit note issued by the supplier, what is the implication on the supplier’s GSTR-3B?
A: There will be no implication on the supplier. The supplier’s tax liability is unlikely to be affected.
Q: If the supplier uploads an invoice in GSTR-1 through e-invoice and then deletes it while filing GSTR-1, what happens in GSTR-2A or GSTR-2B?
A: Such transactions will not appear in GSTR-2B, even if an action was taken in IMS.
Q: If a supplier issues a credit note that is not part of our record, should it be kept pending or rejected?
A: Credit notes cannot be kept pending. In such cases, they should be rejected.
Q: Will pending invoices be added to the next GSTR-2B?
A: No, pending invoices will remain in IMS until actions are taken.
Q: Can a customer modify an invoice if there is a small mistake, such as in the invoice number or date?
A: No, customers cannot modify the invoice. The supplier is responsible for making any corrections.
Q: Is there a separate IMS portal? How do I access the IMS portal?
A: IMS will be available on the GST portal. Cygnet is also developing a module, which will be live soon.
Q: If a customer rejects an invoice, will the supplier be notified?
A: Yes, the rejection will appear in the supplier’s IMS. This feature is expected to be implemented in phase 2 by GSTN.
Krunal Shah
Senior Tax Expert
Krunal is a member of the Institute of Chartered Accounts of India, a Certified Management Accountant, and a management graduate. With a background in finance & taxation and years of experience advising clients on intricate tax matters in India and the Middle East, he brings a wealth of financial acumen and regulatory insight to the world of taxation. At Cygnet Digital, he heads the managed services, ensuring timely tax compliance for some of India’s finest corporates. Through his published works, he simplifies complex tax concepts, making them accessible to a broad audience and empowering readers to navigate the intricacies of taxation with confidence.
