On the GST portal, a new facility shall be implemented with effect from 1st October 2024 in which the supplier and recipient will be able to communicate through the portal regarding the acceptance or rejection of the Invoices being uploaded by the supplier reflected in the Invoice Management System of the Recipient.
Since the inception of the GST, the Department is taking various measures to smoothen the process of taking and utilizing the Input Tax Credit (ITC). From GSTR2 to GSTR2A to GSTR2B, the Department has come up with the various forms and method to synchronize the process of ITC availment and utilization.
Till now, the GSTR2B is the only method available in the GST portal through which the recipient of the goods or services avail the ITC of the goods or services received through out the month / quarter depending upon the frequency of filing the Form GSTR3B. In the existing system, the recipient while filing the GSTR3B avails and utilize the ITC on the basis of the entries available in the GSTR2B which is auto populated in the GSTR3B.
From 1st October 2024, there will be a change regarding the availment of the ITC which will be a major booster to the ITC availment mechanism. Now, let’s understand how the new system will work.
When the supplier enters the data in its GSTR1 / IFF, the data then flows to the recipient’s Invoice Management System (IMS) dashboard. After the filing of GSTR1 / IFF, then the recipient will have the following options with respect to the data being shown in the Invoice Management System dashboard :-
Accept – the recipient will accept the invoices being shown in the Invoice Management. After the recipient accept the invoices, then the data will move to the GSTR2B of the respective period. After wards, the recipient will file the GSTR3B after taking into account the ITC available in the GSTR2B.
Reject – the recipient will reject the invoices depending on the nature of the same. In that case, the rejected invoices will not be moved to the GSTR2B and in subsequent period will not be available to the recipient for selection. The recipient will file the GSTR3B based on the selection of the invoices available in the GSTR2B migrated from Invoice Management System dashboard.
Pending – the recipient will have the option to mark the invoice as “Pending” in the IMS. The recipient will have the time as mentioned in the section 16(4) to take the invoice. The said invoices will be reflected in the Invoice Management System unless and until the same shall be accepted or rejected by the
No action – If the recipient will not take any action on the invoice, then the same shall be deemed as Accepted. The said invoices will move to the GSTR2B of the respective period. Afterwards, the recipient will file the GSTR3B after taking account of the invoices being shown in the GSTR2B.
There are certain points which needs to be considered while filing the GST returns through the Invoice Management System dashboard :-
- In case the supplier amends the invoice details in the GSTR1 / IFF before filing the GSTR1 / IFF, then the invoice will be updated in the IMS dashboard of the recipient irrespective of the fact whether the same has been accepted or rejected by the recipient. The recipient shall update the GSTR2B after the cut off date of availing the ITC for filing the GSTR3B.
- In this case, the supplier files the GSTR1 / IFF and afterwards the same invoice has been amended by the supplier through GSTR1A, then the same shall be available to the recipient in the IMS dashboard, however, the recipient will take the credit of the Invoice in the subsequent months.
- In the case of the quarterly filers, the invoices filed by the suppliers will be available in the Invoice Management System dashboard. However, GSTR2B for the recipients will not be available for the M1 and M2 of the Quarter. The GSTR2B shall be available at the quarter end of the recipient. In that case, the recipient will take the decision of acceptance, rejection of the invoices available in the IMS and then the GSTR2B will be finalized based on the same. Thereafter, the recipient can file the GSTR3B.
- It is pertinent to note that the GSTR2B will not be generated if the GSTR3B is not filed for the previous period.
- In the following cases, the invoices will not be reflected in the Invoice Management system:-
- The invoices pertaining to the Reverse charge mechanism.
- The invoices which are ineligible due to section 16(4) or POS rules.
- In the case of the following invoices, the recipients shall not be allowed to take the pending action :-
- Original credit notes
- Upward amendment of the credit note irrespective of the action taken by the recipient on the original credit note
- Downward amendment of the credit note if original credit note was rejected by the recipient
- Downward amendment of Invoice / debit note where original invoice / debit note was accepted by the recipient and respective GSTR3B has been filed.
To view / download the advisory on the Invoice Management System available on GST website, click here
