Curious about how to streamline your Invoice Management System?
We recently hosted a webinar featuring Hardik Panchal and Tapas Ruparelia, who tackled the top questions and challenges on the IMS.
Dive into our blog for key insights and expert advice from the session!
Q: Will IMS include all fields currently appearing in GSTR-2B?
A: Yes, IMS will encompass all the fields necessary for identifying and taking action on invoices.
Q: Will there be any changes to the GSTR-2B process if a taxpayer does not use IMS?
A: No, if IMS is not used, all invoices, credit notes, and debit notes will be automatically deemed accepted and populated in GSTR-2B.
Q: If I reject an invoice on IMS, can I provide a reason for the rejection? What if I don’t?
A: Currently, there is no option to provide a reason for rejecting an invoice. Vendors may contact you to inquire about the rejection.
Q: Can we modify the RCM auto-populated value in the GSTR-3B return?
A: Yes, the RCM auto-populated values in GSTR-3B can be edited up until the return is filed.
Q: Do I need to reverse the ITC for POS issues or if ITC is time barred, which is auto-populated in GSTR-3B?
A: No separate reversal is needed as it will be auto-populated in Table 4D(2) of GSTR-3B.
Q: When will this system be implemented?
A: According to the advisory, the system is expected to be implemented starting October 1st.
Q: Do I have to accept invoices one by one, or is there an option for bulk acceptance since there will be around 1,000 to 2,000 invoices every month?
A: IMS and the Cygnet portal both offer options for bulk actions, allowing you to process multiple invoices at once.
Q: If the recipient rejects an invoice, will the supplier’s liability be reduced?
A: No, the supplier’s liability will not be reduced if the recipient rejects the invoice.
Q: If there is an error while raising an invoice and it is reversed through a Credit Note (CN), should the recipient reject both the invoice and the CN?
A: Yes, the recipient should reject both the invoice and the CN.
Q: How should ITC that has been reversed under temporary reversals in Table 4(b)(2) be handled in IMS?
A: In the future, unreconciled invoices should be kept pending or rejected in IMS. Only limited cases, such as differential amounts, need to be mentioned in Table 4(b)(2).
Q: Sometimes we receive the CN copy after 2-3 months, but it is shown in IMS. Can we keep it pending until we receive and confirm the CN copy?
A: No, credit notes cannot be kept pending in IMS.
Q: Can invoices be amended after filing GSTR?
A: Yes, invoices can be amended after filing GSTR 1.
Q: What types of actions can be taken in IMS?
A: Actions that can be taken include accepting, rejecting, or marking invoices as pending. No action will be considered as acceptance.
Q: What is the duration for no-action cases before they are automatically posted to GSTR-2B?
A: No time limit is prescribed for carrying forward no-action cases. They will remain pending until action is taken.
Q: If I reject a Credit Note, will there be any interest implications in the subsequent month?
A: No, rejecting a Credit Note should not have any interest implications.
Q: Is there a timeline for when invoices saved as pending should be addressed?
A: No specific timeline has been mentioned. However, actions should be taken before the invoices become time-barred.
Q: Can changes be made in IMS after filing GSTR-3B?
A: Any changes made after filing GSTR-3B will be reflected in the GSTR-2B for the following month.
Q: Where can I find IMS?
A: IMS will be available on the GST portal. Additionally, it would also be available on the Cygnet portal.
Q: If the recipient rejects the invoice, what happens to the supplier?
A: The rejection will appear in the supplier’s IMS, with full implementation expected in phase 2.
Q: Can previously taken actions be amended? For example, if I accepted an invoice on the 13th and want to reject it on the 14th, is this possible?
A: Yes, changes can be made. However, if the GSTR-2B has already been generated, it will need to be regenerated after making amendments.
Q: If a buyer rejects a debit note issued by the supplier, what is the implication on the supplier’s GSTR-3B?
A: There will be no implication on the supplier. The supplier’s tax liability is unlikely to be affected.
Q: If the supplier uploads an invoice in GSTR-1 through e-invoice and then deletes it while filing GSTR-1, what happens in GSTR-2A or GSTR-2B?
A: Such transactions will not appear in GSTR-2B, even if an action was taken in IMS.
Q: If a supplier issues a credit note that is not part of our record, should it be kept pending or rejected?
A: Credit notes cannot be kept pending. In such cases, they should be rejected.
Q: Will pending invoices be added to the next GSTR-2B?
A: No, pending invoices will remain in IMS until actions are taken.
Q: Can a customer modify an invoice if there is a small mistake, such as in the invoice number or date?
A: No, customers cannot modify the invoice. The supplier is responsible for making any corrections.
Q: Is there a separate IMS portal? How do I access the IMS portal?
A: IMS will be available on the GST portal. Cygnet is also developing a module, which will be live soon.
Q: If a customer rejects an invoice, will the supplier be notified?
A: Yes, the rejection will appear in the supplier’s IMS. This feature is expected to be implemented in phase 2 by GSTN.
Looking for a seamless way to automate your invoicing? Explore our Invoice Management System to simplify billing, compliance, and cash flow management.
Author
Krunal Shah
Senior Tax Expert
Krunal is a member of the Institute of Chartered Accounts of India, a Certified Management Accountant, and a management graduate. With a background in finance & taxation and years of experience advising clients on intricate tax matters in India and the Middle East, he brings a wealth of financial acumen and regulatory insight to the world of taxation. At Cygnet.one , he heads the managed services, ensuring timely tax compliance for some of India’s finest corporates. Through his published works, he simplifies complex tax concepts, making them accessible to a broad audience and empowering readers to navigate the intricacies of taxation with confidence.