Notification / Circular No – Advisory dated October 17, 2025
Applicable Act/Rule: Central Goods and Services Tax Act, 2017 (CGST Act)
The Invoice Management System (IMS) was introduced on the GST portal to facilitate invoice reconciliation between suppliers and recipients. Initially, taxpayers could only accept or reject supplier-issued invoices or credit notes. This often led to issues where recipients could not defer action on disputed or mismatched credit notes, resulting in premature ITC reversals and reconciliation complications.
The new enhancement introduced on October 17, 2025, allows taxpayers to mark credit notes as “Pending” for one tax period in IMS. This provides flexibility to temporarily defer acceptance until disputes or mismatches are resolved with the supplier. Additionally, taxpayers can now declare or modify the reversal amount of Input Tax Credit (ITC) at the time of accepting such credit notes.
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