Major Updates in GST Portal’s Invoice Management System(IMS): Simplifying Input Tax Credit (ITC) management

As a tax consultant working with businesses across Delhi NCR and beyond, I’ve seen how the GST system can sometimes feel overwhelming with its constant updates and compliance requirements. But the latest advisory from the Goods and Services Tax Network (GSTN) brings some welcome relief. They’ve rolled out significant changes to the Invoice Management System (IMS) on the GST portal, aimed at making things easier for taxpayers like you.

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These updates focus on reducing the paperwork burden, giving more flexibility in handling invoices, and ensuring smoother Input Tax Credit (ITC) management. If you’re a monthly or quarterly filer dealing with invoices, credit notes, or debit notes, this directly impacts your workflow. In this article, I’ll break down everything in detail—what these changes mean, why they matter, and how you can use them step by step. Let’s dive in so you can stay ahead and avoid any last-minute hassles.

Understanding the Core Purpose of These IMS Changes.

The GST portal has always been a central hub for managing invoices and claims, but earlier versions sometimes forced quick decisions on amendments or rejections, leading to unnecessary reversals of ITC or compliance errors. The new IMS updates, effective from the October 2025 tax period for key features, are designed to simplify this process. According to the GSTN team, the goal is to cut down on the compliance load by allowing more time for review and providing tools for precise ITC handling. This is especially helpful for small and medium businesses that juggle multiple suppliers and don’t always have the bandwidth for instant actions.

These changes apply prospectively, meaning they’ll only cover records uploaded by suppliers after the official rollout. If you’re reviewing older invoices, the old rules still hold. Always double-check the portal for the exact rollout date, as it’s tied to the October period. Taxpayers are urged to read these updates carefully before filing returns like GSTR-3B to prevent mismatches or penalties.

Pending Actions for Specified Records: More Time to Decide.

One of the biggest reliefs is the option to keep certain records “pending” instead of accepting or rejecting them right away. Previously, you had to act immediately, which could lead to rushed decisions and complications in ITC claims. Now, you get a grace period of one full tax period—one month for monthly taxpayers and one quarter for quarterly ones. This breathing room is limited to specific types of records, ensuring the system doesn’t get cluttered.

Here’s what qualifies as a “specified record” that you can pend:

• Credit notes or upward amendments to credit notes: If a supplier issues a credit note or increases its value (upward amendment), you can hold off on action while verifying details with them.
• Downward amendments to credit notes where the original was rejected: If you previously rejected a credit note and now the supplier lowers its value, this can be pended to confirm the changes.
• Downward amendments to invoices or debit notes, but only if the original invoice was accepted and GSTR-3B has been filed: This applies when the supplier reduces the value of an already accepted invoice or debit note after you’ve filed your summary return. It’s a common scenario in trade corrections.
• Downward amendments to e-commerce operator (ECO) documents, again only if the original was accepted and GSTR-3B filed: For platforms like Amazon or Flipkart that report your supplies, if they amend downward post-acceptance and filing, you can pend this too.

The due date for taking action on these pending records is calculated from the date or tax period when the supplier communicated the document to you via the portal. Miss this window, and the system might auto-process or flag it, so mark your calendar.

Step-by-Step Guide: How to Pend a Record in IMS.

1. Log in to the GST Portal: Visit gov.in and sign in with your GSTIN and credentials. Navigate to Services > Returns > IMS (Invoice Management System).
2. View Your Records: Under the IMS dashboard, select the relevant tax period (e.g., October 2025 onward). Filter for “Actionable Records” or “Amendments” to see incoming invoices, credit/debit notes from suppliers.
3. Identify Eligible Records: Look for the specified types listed above. The portal will highlight if it’s eligible for pending—check the status column for options like “Accept,” “Reject,” or “Pending.”
4. Select Pending Option: Click on the record. A pop-up will show details. Choose “Pending” and enter the reason if prompted (more on remarks later). Confirm the action. The system will note the due date based on communication.
5. Monitor and Act Within Time: Use the dashboard’s reminders or set personal alerts. Before the due date, review with your supplier if needed, then accept or reject as appropriate. If you pend it, it won’t affect your immediate ITC claim but ensures accuracy for future GSTR-2B.

This feature helps avoid provisional ITC claims that might need reversal later, saving you from interest or penalties under Section 50 of the CGST Act.

Declaring ITC Reduction: Precise Control Over Reversals.

ITC is the lifeblood of GST compliance—it lets you offset taxes paid on inputs against your output liability. But amendments like downward changes often triggered full reversals, even if you hadn’t claimed the full amount. The new clarification and facility in IMS fix this by letting you declare exactly what you’ve availed and reverse only what’s necessary.

Key points from the advisory:

• If you haven’t availed ITC on a particular invoice or document at all, no reversal is required. This prevents forced adjustments on unclaimed credits.
• If you’ve availed only partial ITC, you only reverse that portion—no more, no less. This aligns with the actual economic benefit you’ve taken.

In IMS, there’s now a dedicated tool for these specified records (the same ones eligible for pending). You can enter the exact ITC amount availed and specify how much to reverse—full, partial, or even zero if already handled earlier or never claimed. This is a game-changer for cases where you’ve already reversed ITC in a prior return or simply didn’t claim it due to ineligibility.

Why does this matter? It reduces errors in GSTR-3B reconciliation and minimizes cash flow hits from unnecessary reversals. For instance, if a supplier amends an invoice downward by Rs. 10,000 (with Rs. 1,800 IGST), but you only claimed Rs. 900 ITC earlier, you now reverse just Rs. 900 instead of the full amount.

Step-by-Step Guide: How to Declare and Reverse ITC in IMS.

1. Access IMS Dashboard: Log in as before and go to IMS under Returns. Select the tax period and view the record (must be one of the specified types, post-October 2025).
2. Open the Record Details: Click the invoice/credit note. The portal will show original vs. amended values, including tax breakdown (CGST, SGST, IGST, cess).
3. Check Your ITC Status: Review your GSTR-2B or 3B ledger to note how much ITC you actually availed from this document. If partial or none, gather supporting proofs like your books of accounts.
4. Declare Availment Amount: In the IMS action screen, find the “ITC Declaration” section. Enter the total ITC availed (e.g., Rs. 1,200 out of possible Rs. 1,800). The system auto-calculates the differential based on the amendment.
5. Specify Reversal Amount: Input the amount to reverse—match it to what you’ve availed if applicable, or zero if none/not claimed. Confirm if this reversal should reflect in your next GSTR-3B (it will auto-adjust in the ledger).
6. Submit and Verify: Save and submit the action. Download the acknowledgment for records. Cross-check in your Electronic Credit Ledger under Ledgers > ITC to see the update. If you’ve already reversed elsewhere, use this to avoid double-counting.

Remember, this facility is only for the listed records and post-rollout filings. If you’re using accounting software, sync it with the portal to avoid manual errors.

Adding Remarks: Better Communication with Suppliers.

Communication gaps between buyers and suppliers often lead to repeated amendments and disputes. To address this, IMS now lets you add optional remarks when you reject or pend a record. This feature is rolling out shortly, so keep an eye on portal notifications.

Your remarks will show up in your GSTR-2B for easy reference during audits or returns. More importantly, suppliers can see them in their Outward Supplies dashboard, prompting them to correct issues quickly—like fixing invoice errors or providing missing documents.

For example, if you pend a credit note amendment, you could note: “Please confirm the reduced value with invoice copy.” This fosters better vendor relationships and speeds up compliance.

Step-by-Step Guide: How to Add and Use Remarks.

1. Locate the Action Screen: In IMS, select a record for reject or pending.
2. Enter Remarks Field: Once rolled out, a text box will appear below the action buttons. Keep it concise—under 500 characters—and professional, e.g., “Awaiting supplier clarification on tax rate.”
3. Save and Submit: The system saves it automatically with your action. No separate approval needed.
4. Track Visibility: In your GSTR-2B (under Returns > GSTR-2B), filter for the record to view remarks. Suppliers get notified via their dashboard.

Use this sparingly but effectively to build a paper trail for any disputes.

Key Dates and Practical Advice for Implementation.

These changes kick in from the October 2025 tax period, specifically for pending credit notes and ITC declarations. For pending actions, the clock starts from when the supplier uploads or communicates the document. Quarterly filers get until the end of their quarter, so plan accordingly—e.g., if communicated in October, act by December 31 for Q3.

Since it’s prospective, pre-October records follow old IMS rules. As your consultant, I recommend:

• Review Immediately: Log in weekly to IMS and clear old pendings.
• Train Your Team: If you have staff handling GST, walk them through these steps to avoid mistakes.
• Consult Experts: For complex cases, like high-value amendments, reach out to a CA or use services like those on in for personalized guidance.
• Stay Updated: Subscribe to GSTN advisories via email or the portal’s notification center. Changes like these can evolve, so vigilance is key.

In summary, these IMS updates are a step toward a more taxpayer-friendly GST ecosystem, cutting down on rigid timelines and imprecise ITC adjustments. By using them wisely, you can save time, reduce errors, and focus on growing your business. If you’re facing specific invoice issues, it’s worth checking the portal right away.