GSTN Advisory, Dated 19-06-2025
The Goods and Services Tax Network (GSTN) has issued a detailed advisory to guide taxpayers in correcting inadvertently rejected invoices, debit notes, credit notes, and ECO documents in the Invoice Management System (IMS). This step aims to streamline rectifications and ensure accurate reflection of Input Tax Credit (ITC) in Form GSTR-2B.
1. Corrective Actions for Rejected Documents
In cases where recipients have wrongly rejected documents:
- The recipient may request the supplier to re-report the same record without any modification.
- The supplier can furnish the record in:
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- Form GSTR-1A of the same tax period; or
- The amendment table of a subsequent Form GSTR-1 or IFF.
Once the document is accepted on IMS, the system will recompute Form GSTR-2B, enabling the recipient to avail or reverse ITC accordingly.
Note – The supplier’s tax liability remains unaffected, as the amendment reflects only the delta value.
2. Special Case – Credit Note Rejection After GSTR-3B Filing
If a credit note was inadvertently rejected and the GSTR-3B return has already been filed, the following applies:
- Automatic reversal is not possible.
- The supplier may re-report the same credit note, unchanged, via:
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- Form GSTR-1A of the same period; or
- The amendment table in a later GSTR-1/IFF.
Upon the recipient’s acceptance and recomputation of Form GSTR-2B:
- The recipient’s ITC will be reduced by the original credit note amount.
- Simultaneously, the supplier’s liability—previously added back—will be reduced, resulting in zero net impact.
3. Objective and Impact
This advisory ensures:
- Consistency and transparency in ITC adjustments.
- No duplication or excess liability on the part of the supplier.
- A clear mechanism for reconciliation and correction within the IMS and return filing framework.
