GSTN Advisory, Dated 23-09-2025
1. Introduction
The Goods and Services Tax Network (GSTN) has issued an advisory announcing new updates in the Invoice Management System (IMS). These changes are aimed at simplifying compliance procedures for taxpayers by offering flexibility in handling records and enhancing the accuracy of Input Tax Credit (ITC) reporting. The improvements are designed to strengthen transparency and efficiency in GST compliance.
2. Facility to Keep Records Pending
One of the most significant changes is the option for taxpayers to keep specified records pending for a limited period, defined as one tax period. For monthly filers, this means one month, while for quarterly filers, it extends to one quarter. Eligible records include credit notes or their upward amendments, downward amendments of credit notes where the original was rejected, downward amendments of invoices or debit notes where the original was accepted and GSTR-3B filed, and similar ECO-document amendments. This provides businesses with more time to reconcile and review records before finalizing actions.
3. New ITC Declaration Feature
The GSTN has also introduced a new feature allowing taxpayers to declare the amount of ITC actually availed, along with cases where ITC is partially or fully reversed for the specified records. This facility ensures that ITC reporting is more accurate and aligned with supplier data, reducing discrepancies and the chances of disputes during reconciliation. It is also expected to improve the overall reliability of ITC claims under the GST system.
4. Remarks and Supplier Visibility
Another enhancement is the option for taxpayers to add remarks while rejecting or keeping records pending. These remarks will be visible in Form GSTR-2B as well as in the Outward Supplies dashboard, giving suppliers clarity on the reasons for rejection or delay. This measure promotes better communication between taxpayers and suppliers, helping avoid unnecessary disputes and enabling smoother compliance processes.
5. Conclusion
These updates will take effect from the October tax period and will apply prospectively only to records filed by suppliers after the rollout. By allowing pending actions for one tax period, enabling ITC declaration, and improving visibility through remarks, the GSTN has strengthened the IMS framework. Overall, these reforms simplify compliance, enhance transparency, and foster better coordination between suppliers and recipients under the GST system.
