GSTN Introduces New Feature to Fix Invoice Matching Errors for ITC Claims
Date: November 16, 2024
Category: GST Recent News
The Goods and Services Tax Network (GSTN) has launched a new Invoice Management System (IMS) to streamline invoice matching, enabling taxpayers to claim Input Tax Credit (ITC) more efficiently while minimizing disputes.
Key Features of the Invoice Management System (IMS)
- Real-Time Validation:
Invoices filed by suppliers in forms GSTR-1, GSTR-1A, and IFF are immediately visible to recipients.
- Action by Recipients:
Recipients can:
Accept
Reject
Keep Pending
Invoices they receive.
- Impact of Non-Action:
If no action is taken, the invoice is considered deemed accepted by default.
- Automatic Reconciliation:
Data accepted, rejected, or deemed accepted automatically integrates into GSTR-2B, forming the basis for ITC claims.
- Reduced Disputes:
By ensuring accurate matching between buyer and seller records, disputes related to ITC mismatches are significantly reduced.
Significance of the IMS
Streamlined Compliance:
IMS aligns seamlessly with GST return filings, fostering easier compliance for taxpayers.
Reduced Notices:
According to tax experts, most GST notices currently involve mismatches in ITC claims. IMS addresses this by improving accuracy.
Annual GST Return Filing Deadline
The due date for filing annual returns (GSTR-9 or GSTR-9A) for FY 2023-24 is December 31, 2024. Taxpayers must ensure their GSTIN is active and all monthly returns (GSTR-1, GSTR-3B) are filed.
Exemptions from Annual Return Filing
Casual taxable persons.
Input service distributors.
Non-resident taxable persons.
TDS/TCS deductors under Sections 51 and 52.
Taxpayers with an annual turnover of up to ₹2 crore.
Penalties for Non-Compliance
Late filing incurs late fees and penalties.
Ensure timely submission to avoid additional liabilities.
Conclusion
The introduction of IMS on the GST portal is a progressive step toward improving transparency and reducing disputes in ITC claims. Taxpayers are advised to utilize this feature for better compliance and to meet the December 31, 2024 deadline for annual GST returns.
