From October 1, 2024, the Invoice Management System (IMS) was made operational by the GSTN, with full implementation mandated by July 2025 for businesses with turnover exceeding ?10 crore.
Under IMS, recipients can now:
- Accept an invoice if correct
- Reject if there’s a mistake or fraud
- Defer if unsure or awaiting goods/services
These actions impact GSTR-2B generation, which is crucial for claiming Input Tax Credit (ITC).
Benefits of IMS:
- Prevents fraudulent ITC claims
- Allows early detection of mismatches
- Enhances supplier-buyer communication
- Reduces disputes and notices from the department
The system is particularly important for medium and large enterprises where thousands of invoices are generated monthly.