The GST Network (GSTN) is set to introduce a Bill Management System (IMS) starting October 1.
This new system will help taxpayers ensure that the records and bills issued by their suppliers match, enabling them to claim the correct input tax credit (ITC).
The GST Network, which serves as the platform for filing GST returns and paying tax liabilities, announced in an advisory to GST payers that –
IMS will allow taxpayers to efficiently manage any corrections or amendments in bills with their suppliers through the portal.
Features of IMS
The IMS will enable taxpayers to efficiently manage corrections and amendments in bills with their suppliers.
Through this system, taxpayers can accept, reject, or keep invoices pending for future review.
This feature will help in accurately matching the records and ensuring the correct ITC.
How the IMS Facility Works
GSTN explained that the IMS facility will allow taxpayers to match records and bills from their suppliers to ensure they claim the correct ITC.
With IMS, taxpayers will have the option to accept, reject, or keep an invoice pending in the system for later use.
This facility will be available on the GST portal starting October 1.
Benefits of IMS for Taxpayers
Rajat Mohan, Executive Director of the consulting firm Moore Singhi, highlighted that IMS will create a solid foundation for GST audits by keeping a detailed record of actions taken on all invoices.
This system provides tax officials with clear evidence of the recipient’s due diligence in managing ITC claims.
Experts are considering this update a significant improvement to the current system.
