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New Tool to Fix GST Invoice Errors for Input Tax Credit Claims

The GST Network (GSTN) has launched a new Invoice Management System (IMS) to make it easier for taxpayers to claim Input Tax Credit (ITC) and reduce disputes related to mismatched invoices. This system ensures that invoices uploaded by sellers on the GST portal are automatically visible to buyers in their IMS.

Why the Invoice Management System Matters

An expert noted that most notices issued by GST authorities today are due to ITC mismatches. The IMS is a step forward in helping buyers and sellers reconcile their invoice data.

With the new system, buyers can review invoices filed by their suppliers (in forms like GSTR-1, GSTR-1A, or IFF). They can then accept, reject, or keep the invoices pending. This helps them ensure accurate ITC claims.

Key Features of the Invoice Management System

  • Real-Time Validation: Taxpayers can validate invoices in real-time.
  • Seamless Integration: IMS integrates smoothly with GST returns.
  • Action Required: Buyers must review and take action on invoices—either accepting, rejecting, or keeping them pending. If no action is taken, the invoice is considered deemed accepted.

The accepted, rejected, or pending invoices are then automatically transferred to GSTR-2B, which serves as the basis for claiming ITC.

Important GST Deadlines

The deadline for filing annual GST returns (Form GSTR-9 or GSTR-9A) for the financial year 2023-24 is December 31, 2024. However, you can only file an annual return if:

  1. Your GSTIN is active during the financial year.
  2. All monthly returns (like GSTR-1 and GSTR-3B) are filed.

Who Doesn’t Need to File GST Annual Returns?

The following taxpayers are exempt:

  1. Casual Taxable Persons: Those who occasionally supply goods or services for business purposes.
  2. Input Service Distributors.
  3. Non-Resident Taxable Persons.
  4. Taxpayers paying tax under Section 51 (TDS diductors) and Section 52 (TCS collectors).
  5. Registered taxpayers with an annual turnover of up to ₹2 crore.
What Happens If You Miss the Deadline?

If you don’t file your annual return on time, you’ll face a late fee and penalties.

The new Invoice Management System and the upcoming deadlines aim to simplify GST compliance for taxpayers while ensuring accurate ITC claims and reducing errors.

Read About: The Future of Taxation: How GST Registration is Shaping India’s Economic Landscape

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