The Indian GST Network (GSTN) has rolled out a major enhancement to the Invoice Management System (IMS) from the October 2025 tax period. These changes aim to bring better accuracy, transparency, and control in the handling of purchase invoices, credit notes, and GSTR returns. Businesses are now required to take more active roles in reconciling invoices before filing GSTR-3B.
What Is IMS on the GST Portal?
The Invoice Management System (IMS) is an online interface on the GST portal (www.gst.gov.in) that allows taxpayers to review and take action on invoices uploaded by suppliers. It bridges the connection between GSTR-1 (outward supply) and GSTR-2B (input credit statements), ensuring real-time accuracy for Input Tax Credit (ITC) claims.
Originally introduced in late 2024, the IMS received a major upgrade in October 2025, focusing on flexibility and enhanced control for taxpayers.
Key Changes Introduced from October 2025
1. Mandatory Action Required on Every Invoice and Credit Note
Taxpayers must manually review each invoice or credit note on the IMS dashboard and mark it as:
- Accepted
- Rejected
- Pending
Auto-acceptance (deemed acceptance) is no longer applied.
This means that GSTR-2B will only include accepted invoices, ensuring that only verified documents contribute to available ITC.
2. New “Pending” Option Added
A “Pending” status has been added for selected transaction types.
Taxpayers can now delay taking a decision on specific items, such as:
- Credit notes
- Upward or downward amendments in invoices
- Rejected or modified credit note entries
The Pending status is time-bound:
- 1 month for monthly return filers
- 1 quarter for quarterly filers
After this period, action is mandatory before final GSTR-2B generation.
3. Partial Input Tax Credit (ITC) Reversal for Credit Notes
Previously, when suppliers issued a credit note, the system required a full ITC reversal, creating complications for partial ITC claims.
From October 2025, taxpayers can now:
- Revoke credit partially, only up to the extent of ITC actually availed.
- Mention exact reversal amount in the IMS interface.
Example:
If a supplier issues a ₹18,000 GST credit note but the buyer had availed ₹9,000 ITC, now only ₹9,000 can be reversed. This fixes earlier mismatches and simplifies book adjustments.
4. Option to Add Remarks
While accepting, rejecting, or pending an invoice or credit note, taxpayers can now add remarks.
These remarks are visible to both parties, allowing the supplier to understand the reason behind rejection or delay.
This feature facilitates smoother reconciliation and transparent communication across B2B transactions.
5. GSTR-2B Generation and Regeneration
Although earlier advisories had hinted that GSTR-2B would need to be manually generated, the latest GSTN clarification (October 9, 2025) confirms:
- Auto-generation of GSTR-2B will continue on the 14th of every month.
- Taxpayers can regenerate GSTR-2B manually after taking IMS actions, if any updates are made post-14th.
Hence, the system allows taxpayers to synchronize last-minute IMS changes into a regenerated GSTR-2B before filing GSTR-3B.
6. Link Between IMS and GSTR-3B Filing
From October 2025:
- GSTR-3B becomes strictly linked to IMS actions.
- Accepted invoices appear in Table 4 (ITC eligibility).
- Pending or rejected invoices do not appear unless acted upon.
If invoice details mismatch, taxpayers must correct them through GSTR-1A (supplier-side amendment), as GSTR-3B fields are now auto-populated and non-editable.
Business Impact of These Updates
Practical Example
Suppose your supplier issued an invoice of ₹1,00,000 + ₹18,000 GST, and later a ₹9,000 GST credit note.
Earlier, you needed to reverse ₹18,000 in ITC entirely if not yet reconciled.
Under the October 2025 system:
- You log in to IMS.
- Accept the first invoice, mark the credit note Pending.
- When reconciliation completes, reverse ₹9,000 ITC only — exactly matching what was availed.
This ensures accurate accounting with flexibility.
Compliance Tips for Taxpayers
- Check your IMS dashboard early in the tax period.
- Take action before GSTR-2B auto-generation on the 14th.
- Use the Remarks field to communicate properly with suppliers.
- Download regenerated GSTR-2B if you modify data post 14th.
- Coordinate credit note acknowledgment with vendors to avoid ITC lock-ins.
Where to Check Official Notices
Visit official and verified sources for IMS and GSTR-2B updates:
- GST Official Portal: https://www.gst.gov.in
- CBIC Official Website: https://cbic-gst.gov.in
- ClearTax GST Advisory: https://cleartax.in/s/gst-news-and-announcements
Conclusion
The October 2025 IMS reforms represent the next phase of India’s digital tax evolution. While the process demands more taxpayer involvement, it greatly enhances ITC accuracy, supplier transparency, and reconciliation efficiency.
By actively managing IMS entries, businesses can ensure seamless GST compliance and avoid ITC disputes or filing delays.