GST IMS: Invoice Management System Explained
The GST Invoice Management System explained: how to accept, reject or keep pending invoices on the GST portal, how IMS feeds GSTR-2B and GSTR-3B, with examples.
Quick answer: The invoice management system (IMS) on the GST portal lets you, as a buyer, accept, reject or keep pending each invoice your suppliers report. Accepted records flow into GSTR-2B as eligible input tax credit (ITC), rejected ones are excluded, pending ones wait for a later period, and untouched records are deemed accepted. GSTR-2B then feeds your GSTR-3B.
Before IMS, a buyer's only real tool against a wrong supplier invoice was to ignore it in GSTR-3B and hope the reconciliation held up. The invoice management system in GST gives buyers a formal way to respond to each record, and gives suppliers visibility of what was rejected and why. This guide explains how IMS works, the three actions, how it affects GSTR-2B and GSTR-3B, and the October 2025 changes. For the invoice fields themselves, see our GST invoice guide.
Important: This is general information, not tax or legal advice. GSTN updates IMS functionality through advisories on the GST portal, and some rules have changed since launch. Check the latest advisory or ask a chartered accountant before relying on any date or time limit here.
What is the GST invoice management system?
IMS is a dashboard on the GST portal, available from the October 2024 tax period. It shows every inward supply record your suppliers have saved or filed in GSTR-1, GSTR-1A or the Invoice Furnishing Facility (IFF): invoices, debit notes, credit notes and their amendments. For each record, you choose an action. Your choices decide what appears as available ITC in your GSTR-2B for the period.
IMS does not replace GSTR-2B or GSTR-3B. It sits before them. Think of it as an inbox: suppliers send records in, you sort them, and the sorted result becomes your GSTR-2B statement.
Who uses IMS?
- Recipients (buyers): any GST-registered business that claims ITC on purchases. This is the main user.
- Suppliers: they see buyer actions and remarks on their outward supplies dashboard, which tells them which invoices need correcting.
- Accountants and tax practitioners: they typically run the monthly IMS review for clients.
Composition taxpayers, who cannot claim ITC, have little reason to use it. Businesses above the e-invoicing limit still use IMS; e-invoices reported through an IRP flow into GSTR-1 and then into the buyer's IMS like any other record. Our post on the e-invoice limit in GST covers that flow.
Accept, reject or pending: the IMS actions
| Action | When to use it | Effect on your GSTR-2B | What the supplier sees |
|---|---|---|---|
| Accept | Invoice is correct and goods or services received | Included as eligible ITC | Accepted |
| Reject | Wrong GSTIN, not your purchase, duplicate, wrong amount or rate | Excluded from ITC (shown separately) | Rejected, with your remarks |
| Pending | Goods not yet received, dispute in progress, need to check | Excluded this period, carried forward | Pending, with your remarks |
| No action | You did nothing | Deemed accepted and included | Treated as accepted |
"No action" is the trap. If you never open IMS, every record your suppliers upload, correct or not, lands in your GSTR-2B as ITC. You then either claim credit you are not entitled to or have to reverse it manually in GSTR-3B.
How IMS works with GSTR-2B and GSTR-3B
- Suppliers report: during the month, suppliers save or file records in GSTR-1, GSTR-1A or IFF.
- You act in IMS: records appear on your IMS dashboard as they come in. You can act at any time.
- GSTR-2B is generated: on the 14th of the following month, the portal generates your draft GSTR-2B using your IMS actions, with untouched records deemed accepted.
- Recompute if needed: if you take or change actions after the 14th but before filing GSTR-3B, you can recompute GSTR-2B.
- File GSTR-3B: ITC in GSTR-3B is auto-populated from GSTR-2B. Once filed, IMS actions for that period are locked.
This creates a monthly rhythm: review IMS in the first two weeks, act before GSTR-2B is generated, recompute if late changes come in, then file GSTR-3B by its due date.
IMS vs GSTR-2A vs GSTR-2B
Three screens on the GST portal show your purchases, and they are easy to mix up. The short version: GSTR-2A is a live view, IMS is where you act, and GSTR-2B is the fixed monthly result you claim ITC from.
| GSTR-2A | IMS | GSTR-2B | |
|---|---|---|---|
| What it is | Dynamic statement of inward supplies | Action dashboard for inward records | Static monthly ITC statement |
| Updates | Continuously, as suppliers file | Continuously, as suppliers save or file | Generated on the 14th; can be recomputed before filing GSTR-3B |
| Can you act on records? | No | Yes: accept, reject, pending | No, it reflects your IMS actions |
| Used for | Tracking and reconciliation | Deciding which records count as ITC | Auto-populating ITC in GSTR-3B |
Because GSTR-2B is the statement that feeds GSTR-3B, the decisions you make in IMS are what actually change your return. Reconcile your purchase register against IMS during the month, then use GSTR-2B as the final check before filing. If your purchase register shows an invoice that never appears in IMS, the supplier has not reported it yet; chase the supplier rather than claiming ITC on it.
IMS changes from October 2025
A GSTN advisory in September 2025 introduced changes that apply prospectively from the October 2025 tax period:
- Pending credit notes: credit notes, and certain amendments of credit notes, invoices and debit notes, can be kept pending for one tax period only (one month for monthly filers, one quarter for quarterly filers), counted from when the supplier reported them.
- ITC reversal declaration: when you accept a credit note on an invoice where you never claimed ITC, or claimed only part of it, you can declare the ITC actually availed and reverse only that amount instead of the full credit note value.
- Remarks: you can add remarks when you reject or keep a record pending. Remarks appear in your GSTR-2B and on the supplier's dashboard.
GSTN has also added an offline IMS tool for bulk actions. Other changes have been discussed in commentary, including stricter rules on deemed acceptance, but confirm any such change on the portal before acting on it.
Worked example: a monthly IMS review
A Bengaluru trading business reviews five inward records for October 2026 before the 14th of November.
| Record | Taxable value (Rs) | Tax (Rs) | Situation | Action |
|---|---|---|---|---|
| Invoice A (interstate) | 1,00,000 | IGST 18,000 | Correct, goods received | Accept |
| Invoice B (local) | 50,000 | CGST 4,500 + SGST 4,500 | Correct, service received | Accept |
| Invoice C | 20,000 | IGST 3,600 | Not our purchase (wrong GSTIN) | Reject |
| Invoice D | 30,000 | IGST 5,400 | Goods in transit | Pending |
| Credit note E (against A) | -10,000 | IGST -1,800 | Agreed discount | Accept |
The maths: ITC available in GSTR-2B = 18,000 (A) + 9,000 (B: 4,500 + 4,500) - 1,800 (E) = Rs 25,200. Invoice C's Rs 3,600 is excluded and visible to the supplier with the remark "Wrong GSTIN, not our purchase". Invoice D's Rs 5,400 is carried forward and can be accepted in November once the goods arrive. Had the business left everything untouched, GSTR-2B would have shown 18,000 + 9,000 + 3,600 + 5,400 - 1,800 = Rs 34,200, overstating eligible ITC by Rs 9,000.
Common IMS mistakes
- Never opening IMS. Deemed acceptance pulls every record into GSTR-2B, including wrong ones.
- Rejecting instead of pending. If the invoice is right but goods have not arrived, keep it pending. A rejection forces the supplier to act.
- Rejecting genuine credit notes to protect ITC. This adds tax back to the supplier and usually triggers a dispute.
- Acting after filing GSTR-3B. Actions lock once the return is filed.
- Not telling suppliers. Remarks help, but a direct email resolves most rejections faster.
- Wrong rates after GST 2.0. Suppliers still using an old rate generate mismatches. See new GST rates under GST 2.0.
How suppliers can avoid IMS rejections
If you sell to GST-registered businesses, IMS means buyers can now formally push back on your invoices. Reduce rejections by getting the basics right on every invoice:
- Verify the buyer's GSTIN and state before invoicing. Our guide to the tax ID on an invoice explains GSTIN structure.
- Match the PO number and amounts the buyer expects. See PO numbers on invoices.
- Use the correct place of supply so the tax type (IGST vs CGST plus SGST) is right.
- Report credit notes promptly and agree them with the buyer first.
- Keep invoice numbers unique and sequential; the invoice number generator helps you plan a series.
IMS monthly checklist
- Open IMS weekly, not just before the 14th
- Match each record against your purchase register and goods receipt
- Accept correct records, keep pending those awaiting delivery, reject wrong ones with a remark
- Track pending credit notes against the one-period limit
- Recompute GSTR-2B if you act after the 14th
- Reconcile GSTR-2B with your books, then file GSTR-3B
- Email suppliers about every rejection
Next step
Log in to the GST portal and open the IMS dashboard for the current period before your next GSTR-2B is generated. Sort every record into accept, reject or pending. If you also issue invoices, review your own GST invoice layout using the GST invoice guide, and for small-volume invoicing below the e-invoice limit, our free invoice generator produces a clear PDF with GSTIN and tax lines.
Frequently asked questions
Is it mandatory to take action on every invoice in IMS?
Taking action has generally been optional. Records you leave untouched are treated as deemed accepted when GSTR-2B is generated, and their ITC is included. Acting on records is still good practice, because rejecting or keeping pending wrong invoices is the only way to keep incorrect ITC out of your GSTR-2B. Some commentators expect stricter rules, so check GSTN advisories.
Can I change my IMS action after accepting an invoice?
You can change an action on the IMS dashboard until you file GSTR-3B for that period, then recompute GSTR-2B. After you file GSTR-3B, the action for that period is locked, and corrections have to be made through later amendments by the supplier or through ITC reversal in your return.
What happens to the supplier when I reject an invoice in IMS?
The rejection and any remarks are visible to the supplier. The supplier can then amend the invoice in GSTR-1A or a later GSTR-1, or issue a correct document. If you reject a credit note, the tax the supplier reduced through that credit note is typically added back to the supplier's liability.
Does IMS cover reverse charge invoices and imports?
IMS was designed for documents your suppliers report in GSTR-1, GSTR-1A or IFF. Reverse charge supplies and certain other documents have been handled differently, and GSTN has added some record types over time, such as import bills of entry. Check the IMS user manual on the GST portal for the current list.
How long can I keep an invoice pending in IMS?
For ordinary invoices, you can generally keep them pending until the time limit for claiming ITC under Section 16(4) of the CGST Act. From the October 2025 tax period, credit notes and certain amendments can be kept pending for only one tax period: one month for monthly filers and one quarter for quarterly filers.
Can quarterly QRMP filers use IMS?
Yes. Records your suppliers upload through IFF or GSTR-1 appear on your IMS dashboard whether you file monthly or quarterly. If you are a QRMP taxpayer receiving invoices, you act on them in the same way, and your actions flow into the GSTR-2B used for your quarterly return. Check the IMS user manual on the GST portal for timing details.
What if a supplier has not uploaded an invoice yet?
It will not appear in IMS or your GSTR-2B, so you generally cannot claim the input tax credit for that period. Ask the supplier to report it in GSTR-1 or IFF. Once it appears, you can accept it in a later period, as long as you are within the time limit for claiming ITC under Section 16(4) of the CGST Act.
Can I accept only part of an invoice in IMS?
No. IMS actions apply to the whole record: you accept, reject or keep it pending. If only part of an invoice is wrong, such as one line at the wrong rate, keep it pending or reject it with a remark and ask the supplier to correct it with a credit note or amendment. The October 2025 changes allow partial ITC reversal declarations only for certain credit notes.
Does rejecting an invoice in IMS mean I do not have to pay the supplier?
No. IMS only decides what input tax credit appears in your GSTR-2B. Whether you owe the supplier money depends on your contract and what was actually supplied. If you reject an invoice because it is wrong, sort out the commercial side directly with the supplier, usually by agreeing a corrected invoice or credit note.
Do e-invoices with an IRN show up in IMS automatically?
Details of e-invoices registered on the IRP are auto-populated into the supplier's GSTR-1, so they normally reach your IMS dashboard without the supplier retyping them. The supplier still has to file the return, and you still need to act on the record. If an IRN invoice is missing, ask the supplier to check their GSTR-1.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
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