GSTN Advisory, Dated 17-10-2025
The Goods and Services Tax Network (GSTN) has introduced a new functionality in the Invoice Management System (IMS) on the GST portal to streamline the handling of Credit Notes and Input Tax Credit (ITC) reversals.
1. New ‘Pending’ Status for Credit Notes
Taxpayers can now mark Credit Notes as ‘Pending’ for one tax period in the IMS.
This feature enables taxpayers to defer action on certain Credit Notes until they have fully verified and reconciled them, thereby reducing mismatches and improving data accuracy in their GST filings.
2. Enhanced Flexibility in ITC Reversal
Alongside this, the IMS has been upgraded to provide taxpayers with greater flexibility to modify their ITC reversal once such Credit Notes are accepted.
This improvement ensures that taxpayers can accurately adjust ITC in line with accepted Credit Notes, promoting more precise reconciliation of input credits.
3. Support and Guidance
To help users navigate the new feature, GSTN has released a detailed set of FAQs, explaining:
- How to mark and manage Credit Notes as ‘Pending’,
- The process of accepting or rejecting such Credit Notes, and
- How to revise ITC reversal entries after acceptance.
Taxpayers are advised to refer to these FAQs for effective utilisation of the new IMS facility.
4. Objective of the Update
The enhancement aims to:
- Simplify Credit Note reconciliation,
- Ensure accuracy in ITC reporting, and
- Facilitate smoother compliance through improved digital functionality on the GST portal.
