What is Invoice Management System (IMS)?
Reviewed by CA Apurav GargLast reviewed
In short
The Invoice Management System (IMS) is the GST portal facility where a buyer sees invoices its suppliers have reported and marks each one accepted, rejected or pending before it flows into GSTR-2B and input tax credit.
What it is
Invoices your suppliers report in their GSTR-1, IFF or GSTR-1A appear in your IMS on the GST portal. For each one you can:
- Accept it: the invoice is included in your GSTR-2B and its credit can be claimed.
- Reject it: it is left out of GSTR-2B. The supplier then has to correct or cancel it.
- Keep it pending: it is left out of this month's GSTR-2B and appears again next month, up to the time limit for claiming credit.
- Take no action: the invoice is treated as accepted when GSTR-2B is generated.
IMS has been available since October 2024. Using it is optional, because invoices you leave alone are treated as accepted, but it is the only way to keep wrong invoices out of your credit.
How it links to GSTR-2B and GSTR-3B
- Suppliers report invoices through the month.
- You act on them in IMS.
- A draft GSTR-2B is generated on a set date in the following month from the invoices accepted or treated as accepted.
- If you change any action after that, you recompute GSTR-2B on the portal.
- You file GSTR-3B, with credit based on GSTR-2B.
Reverse charge invoices and some other documents are not handled in IMS. Credit notes need care: rejecting a supplier's credit note increases your credit, and there are limits on keeping some credit notes pending.
Why it matters for an ecommerce seller
Your input tax credit comes from many suppliers: marketplace fees, couriers, packaging, ads, agencies, warehousing. IMS lets you stop invoices that are:
- billed to the wrong GSTIN or state;
- duplicated, or for the wrong amount;
- for services you have not yet received.
Accepting a wrong invoice puts credit in your GSTR-2B that you may later have to reverse with interest. Rejecting a correct one delays your credit and annoys the supplier.
A monthly routine
- Before the draft GSTR-2B date, match IMS against your purchase register and the marketplace's fee invoices.
- Reject only with a reason you have shared with the supplier.
- Keep invoices pending when the goods or services have not been received yet.
- Recheck GSTR-2B before filing GSTR-3B. Claiming credit that is not in GSTR-2B can lead to a DRC-01C notice.
Example in rupees
A brand's IMS dashboard for October shows invoices from four suppliers:
| Supplier and invoice | Action | Effect on October GSTR-2B |
|---|---|---|
| Marketplace's monthly fee invoice, ₹1,80,000 GST | Accept | Included |
| Packaging supplier, ₹36,000 GST | No action | Treated as accepted; included |
| Courier invoice billed to the wrong GSTIN, ₹9,000 GST | Reject | Left out; the courier must correct it |
| Agency invoice for a campaign not yet delivered, ₹27,000 GST | Pending | Left out this month; appears again in November |
ITC available in October GSTR-2B: ₹1,80,000 + ₹36,000 = ₹2,16,000.
The brand acts on the invoices before the draft GSTR-2B for October is generated in November. If it changes an action after that, it recomputes GSTR-2B on the portal before filing GSTR-3B. The figures are illustrative.
Legal reference: CGST Act, 2017: section 38; CGST Rules, 2017: rule 60
Related terms
Work it out for your business
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General information only, not professional advice. Rules and rates change — check the official source before you act.