The Goods and Services Tax Network (GSTN) has issued an advisory announcing several important changes in the Invoice Management System (IMS), effective from the October 2025 tax period. These changes aim to simplify the taxation process and reduce compliance burden on taxpayers. The key changes are summarized hereinbelow:
- Pending Action for Specified Records
Taxpayers can keep specified records pending for a limited time period.- Time Limit:
- Monthly filers: One tax period (i.e., one month)
- Quarterly filers: One tax period (i.e., one quarter)
- Eligible records that can be kept pending:
- Credit Notes or upward amendment of Credit Notes
- Downward amendment of Credit Notes where the original Credit Note was rejected
- Downward amendment of Invoice/Debit Note where the original document was accepted and GSTR-3B has been filed
- ECO-document downward amendment where the original was accepted and GSTR-3B filed
- Time Limit:
- Facility to Declare ITC Reduction Amount
A new feature allows taxpayers to declare the actual Input Tax Credit (ITC) availed and the corresponding amount to be reversed, if applicable:- Key Clarifications:
- No reversal is required if ITC was never availed on a document
- Reversal should only be made to the extent of ITC actually availed
- Partial ITC reversals can be declared where only part of the ITC was claimed earlier
- This facility is applicable to the same specified records listed above
- This feature also covers past instances where reversals were already made.
- Key Clarifications:
- Option to Save Remarks (Upcoming Feature)
An optional facility will soon be introduced to allow taxpayers to add remarks while taking Reject or Pending actions on records. These Remarks will:- Appear in the GSTR-2B for future reference
- Be Visible to suppliers in their Outward Supplies dashboard to take corrective measures
- Important Dates and Application Scope
- Effective From: Changes will be applicable from the October tax period
- Due Date for Pending Action: Based on the date/tax period when the document was communicated by the supplier
- Prospective Application: Changes apply only to records filed after the rollout of these features
Considering these changes, the businesses should ensure timely action on pending records and ITC reversals and stay updated on the upcoming remarks feature rollout.