GSTN Advisory, Dated 08-10-2025
1. Introduction:
The Goods and Services Tax Network (GSTN) has released an advisory to clarify the functioning of the newly introduced Invoice Management System (IMS) and to counter misinformation regarding changes in GST return filing procedures effective from October 1, 2025. The clarification aims to ensure that taxpayers clearly understand the transition and the continuity of the existing credit reporting and reconciliation process under GST.
2. No Change in Auto-Population of Input Tax Credit (ITC)
GSTN has categorically confirmed that there is no change in the auto-population process of ITC. The flow of data will continue seamlessly from GSTR-2B to GSTR-3B, without requiring any manual intervention from taxpayers. This ensures that businesses can continue to rely on automated data population, maintaining consistency in compliance and minimizing the risk of errors.
3. GSTR-2B Generation to Continue as Before
As part of the advisory, GSTN emphasized that GSTR-2B will continue to be generated automatically on the 14th day of each month. The generation of this form is independent of any action by the taxpayer, ensuring timely availability of input credit data for filing returns. Taxpayers will also have the flexibility to take actions in the IMS even after GSTR-2B has been generated and can regenerate it if any updates or corrections are made.
4. New Flexibility for Managing Credit Notes and Related Documents
Starting from the October 2025 tax period, GSTN has introduced a new feature allowing recipient taxpayers to keep Credit Notes and related documents pending for a specified period. Once accepted, taxpayers can adjust the ITC accordingly, ensuring reversals are made only to the extent availed. This enhancement offers more granular control over ITC management and provides businesses with additional time and flexibility for accurate reconciliation.
5. Conclusion
Through this advisory, GSTN has reinforced its commitment to maintaining a smooth and transparent compliance environment for taxpayers during the implementation of IMS. By preserving existing processes while adding new flexibility features, GSTN aims to simplify return filing, reduce manual intervention, and enhance the overall efficiency of GST compliance for businesses.
