The GST portal launched the Invoice Management System (IMS) in October 2024. Starting FY 2025-26, IMS changes how businesses accept, reject, and dispute supplier invoices — and directly impacts which ITC you can claim.
The Invoice Management System (IMS) is a new facility on the GST portal introduced by GSTN (GST Network) in October 2024. It gives GST-registered recipients a dashboard to view all invoices declared by their suppliers in GSTR-1/IFF, and to take action on each invoice before it auto-populates into their GSTR-2B.
Before IMS, the process was one-directional: suppliers filed GSTR-1, the system auto-generated GSTR-2B for recipients, and recipients could only accept or ignore the auto-populated ITC. If a supplier filed an invoice incorrectly, the recipient's only recourse was to communicate with the supplier and wait for them to amend it in the next period.
IMS changes this fundamentally. Now, recipients can actively Accept, Reject, or mark invoices as Pending directly from their GST portal dashboard. Their action (or inaction) determines what ultimately flows into GSTR-2B and therefore what ITC they can claim.
This guide explains exactly how IMS works, what the three actions (Accept, Reject, Pending) mean for your ITC, how it interacts with GSTR-3B filing, and what businesses need to do differently from April 2026 onwards. Use our GST calculator to verify invoice amounts while reviewing your IMS dashboard, and our myBillPlease to ensure your outgoing invoices are accurately filed in GSTR-1 — because your customers' IMS dashboards show exactly what you declare.
For every invoice a supplier files in GSTR-1, you can take one of three actions in IMS
| Feature | Action | What It Means | Impact on GSTR-2B | When to Use |
|---|---|---|---|---|
| Accept | You confirm the invoice details are correct and you want to claim ITC | Invoice flows into GSTR-2B as accepted — full ITC available | For all correct invoices where you want to claim ITC | |
| Reject | You dispute the invoice — wrong amount, wrong GSTIN, or goods/services not received | Invoice is excluded from GSTR-2B — no ITC auto-populates | When supplier filed wrong invoice or you did not receive the supply | |
| Pending | You need more time to verify — defer the decision to next month | Invoice stays in IMS, does not flow into current month's GSTR-2B | When you are waiting for physical goods delivery or verification | |
| No Action (default) | You do not take any action before GSTR-2B is generated | Invoice flows into GSTR-2B as accepted by default (deemed acceptance) | Not recommended — review all invoices actively |
Understanding the IMS timeline is critical to using it effectively. Here is the monthly cycle:
Between the 1st and the 14th of each month: Suppliers file GSTR-1 and IFF. All invoices filed by suppliers appear in the recipient's IMS dashboard on the GST portal from the date of filing.
Between the 1st and 14th — the IMS action window: This is your window to Accept, Reject, or mark invoices as Pending. The IMS dashboard is accessible throughout the month, but actions taken before the GSTR-2B generation date (14th) will be reflected in that month's GSTR-2B.
14th of each month — GSTR-2B is generated: At midnight on the 14th (technically the start of the 14th), GSTR-2B is auto-generated. All invoices you Accepted (or left without action) appear in GSTR-2B as available ITC. Invoices you Rejected are excluded. Invoices marked as Pending carry forward to the next month's IMS dashboard.
After the 14th: IMS remains accessible, and you can still take actions, but these will only reflect in the next month's GSTR-2B (not the current month's). If you Reject an invoice after the 14th, the ITC that already populated in GSTR-2B must be manually reversed in GSTR-3B — IMS rejection after GSTR-2B generation does not automatically undo the ITC.
Important nuance about deemed acceptance: If you take no action on an invoice before the 14th, it is treated as accepted by default and populates in GSTR-2B. This means you need to be proactive about reviewing and rejecting incorrect invoices before the 14th — not after.
IMS creates a more structured link between supplier filing and recipient ITC claims. Here is how the new flow works compared to the old system:
Old system (before IMS): Supplier files GSTR-1 → System auto-generates GSTR-2B → Recipient claims ITC based on GSTR-2B → If invoice is wrong, recipient must manually reverse in next GSTR-3B after communicating with supplier.
New system (with IMS): Supplier files GSTR-1 → Invoice appears in recipient's IMS dashboard → Recipient takes action (Accept/Reject/Pending) → Only Accepted invoices populate in GSTR-2B → Recipient claims ITC on GSTR-2B data in GSTR-3B.
The key change for ITC discipline: With IMS, the responsibility for ensuring only correct invoices enter your GSTR-2B shifts to you — the recipient. Previously, incorrect invoices auto-populated and you claimed ITC on them (sometimes inadvertently claiming ITC you should not have). Now you have visibility and control before auto-population.
Partial acceptance: IMS currently operates at the invoice level — you accept or reject the entire invoice. You cannot accept a partial amount of a single invoice. If a supplier's invoice has an error in one line item but other line items are correct, you must either: (a) accept the invoice and work with the supplier to issue a credit note for the error, or (b) reject the invoice and have the supplier re-file the corrected invoice in the next period.
Impact on ITC reconciliation: GSTR-2B will now more closely match what you have actively verified and accepted. This should reduce the GSTR-2B vs books reconciliation differences that have historically been a major pain point in GSTR-9 preparation. If you use myBillPlease, the ITC register automatically tracks which invoices are accepted in IMS and which are pending or rejected.
If you are a supplier (which every registered business is to its customers), IMS means your customers can now formally reject your invoices on the GST portal. Here is what that means for your business:
Rejected invoices are visible to you: When a customer rejects an invoice in IMS, you will see the rejection status in your GSTR-1 dashboard. This flags the invoice for your attention.
What to do when your invoice is rejected:
1. Contact the customer to understand why it was rejected (wrong rate, wrong amount, goods not received, or duplicate invoice)
2. If the invoice was incorrectly filed by you, amend it in the next GSTR-1/IFF filing period
3. If the goods were not received by the customer, issue a credit note to cancel the supply
4. If the rejection is incorrect (customer error), provide documentation to support the invoice and request the customer to accept it in IMS
Business relationship impact: Widespread invoice rejections from a single customer may indicate a pattern of disputes. Use IMS rejection data as business intelligence — if multiple invoices from a customer are pending for long periods, it signals a reconciliation issue worth addressing proactively.
E-invoicing interaction: For businesses above Rs 5 crore turnover that generate e-invoices (with IRN), e-invoices are auto-reported to GSTR-1 and appear in customers' IMS dashboards. This makes the supplier-recipient reconciliation even tighter — your e-invoice is effectively the single source of truth for both your GSTR-1 and your customer's IMS action.
IMS does not directly affect GSTR-3B filing — but it affects what shows up in GSTR-2B, which in turn affects your ITC claims in GSTR-3B. Here is the complete flow:
Step 1: By the 11th of each month, your suppliers file GSTR-1. Their invoices for you appear in your IMS dashboard.
Step 2: Between the 11th and the 14th, you review your IMS dashboard. Accept correct invoices, reject incorrect ones, mark unclear ones as Pending.
Step 3: On the 14th, GSTR-2B is auto-generated with your Accepted (and no-action) invoices. This is the ITC pool available to you for the month.
Step 4: Between the 14th and the 20th, you prepare and file GSTR-3B. The ITC you claim in Table 4 of GSTR-3B should match (or be less than) what is available in GSTR-2B. With IMS, your GSTR-2B is now a cleaner, more verified figure — only invoices you Accepted are in it.
Important rule from 2025 onwards: ITC cannot exceed the GSTR-2B amount. If you want to claim ITC that is not in GSTR-2B (because you forgot to accept it in IMS or the supplier filed late), you have limited options: follow up with the supplier to file in the current month, or carry the ITC forward to the next period when the invoice appears in GSTR-2B. You cannot claim ITC on an invoice that is not in GSTR-2B.
Provisional ITC is being phased out: The ability to claim provisional ITC (ITC on invoices not in GSTR-2B) has been progressively restricted since Rule 37A of the CGST Rules was introduced. With IMS in full operation in FY 2025-26, the expectation is that businesses should be able to claim ITC almost entirely through verified GSTR-2B data, reducing the need for provisional claims.
Build IMS review into your monthly accounting workflow starting April 2026
Do not wait until the 13th to review IMS. Check your IMS dashboard weekly — as soon as invoices from suppliers appear, verify them against your purchase orders and goods received notes. Early review prevents last-minute scrambles before the 14th deadline.
Assign one person in your accounts team as the IMS owner — responsible for reviewing, accepting, and rejecting invoices each week. This prevents invoices from being ignored by default (deemed acceptance of incorrect invoices).
When you reject an invoice, immediately communicate the reason to the supplier with specific details — invoice number, error type, correct amount. A standard WhatsApp or email template speeds this up. Prompt communication means suppliers can correct and re-file faster.
For B2B businesses, reconcile IMS invoices against your purchase orders and GRN (Goods Received Notes). Only accept invoices for goods/services you actually received at the declared price. Reject invoices for advance payments where goods are not yet received.
Marking an invoice as Pending defers it to next month's GSTR-2B. Do not use Pending as a way to ignore disputed invoices indefinitely — continuously deferred invoices still sit in your IMS and accumulate. Resolve the dispute within 1-2 months and take a final action.
Consider integrating your IMS review with your accounts payable process. Only release vendor payment after their invoice is verified and accepted in IMS. This creates a natural business control — you pay only for invoices you have confirmed are correctly filed in the GST system.
myBillPlease generates accurate GSTR-1-ready invoices so your customers never have to reject them in IMS. Clean invoices mean faster ITC for your customers and fewer disputes for you.
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