GSTN issues advisory on new changes in Invoice Management System (IMS)

Goods and Services Tax Network has issued an advisory on new changes as introduced in the Invoice Management System (ISM) simplifying the taxation system and reducing the compliance burden on the taxpayers.

Key highlights of the advisory are:

Pending action for specified records: Taxpayers can keep following specified records pending in the system for a limited time period, for one tax period i.e. Monthly or Quarterly as the case may be for taxpayers.

1. Credit notes, or upward amendment of Credit note.
2. Downward amendment of CN where original CN rejected.
3. Downward amendment of Invoice / DN only where original Invoice already accepted and GSTR-3B has been filed.
4. ECO-Document downward amendment only where original accepted, and GSTR-3B has been filed.

Declaring ITC reduction amount: It is clarified that no reversal of ITC shall be warranted, in cases where the recipient has not availed Input Tax Credit (ITC) in respect of the relevant invoice or document. If ITC has been availed only partially, the obligation to reverse ITC shall be limited to the extent of such availment.

Accordingly, a facility has been made available in IMS allowing taxpayers to declare the amount of ITC actually availed and, to the extent applicable, required to be reversed in respect of the selected record. The facility may also be utilized in cases where the taxpayer has already effected such reversal, either wholly or partially, at an earlier point of time, or where the ITC pertaining to the relevant invoice or document was never availed.

Option to save remarks: Taxpayers can now save remarks while taking reject or pending action on records.

Important Dates:

1. The changes of keeping credit notes pending and declaring the ITC amount, as mentioned above shall be made effective on the portal from October tax period.
2. Due date for keeping records pending: The due date for keeping records pending is calculated based on the date/ tax period in which such documents has been communicated by the supplier.

For regulatory updates and update-related services, drop a mail at inquiries@lexplosion.in

Source: GSTN