The Goods and Services Tax Network (GSTN) has rolled out important improvements to the Invoice Management System (IMS). These changes are designed to make compliance easier and reduce confusion for taxpayers. The new features will be available from the October 2025 tax period.
Let’s go through the updates in a simple way 👇
🔹 Pending Records – More Flexibility
Now, taxpayers can keep certain records in a “pending” state instead of making immediate decisions.
Monthly filers → Can keep pending for one month.
Quarterly filers → Can keep pending for one quarter.
Which records qualify?
Credit notes or upward amendment of credit notes.
Downward amendment of credit notes (if the original CN was rejected).
Downward amendment of invoice/debit note (only if original invoice was accepted and GSTR-3B filed).
ECO-document downward amendment (if original accepted and GSTR-3B filed).
💡 Example:
A business receives a credit note in October 2025 but needs time to verify it. Instead of rushing, they can mark it pending till the October return filing due date.
🔹 ITC Reduction – Reverse Only What You Claimed
Earlier, taxpayers often had to reverse ITC even if they hadn’t claimed it. This caused unnecessary reversals. GSTN has now clarified:
If ITC was never availed → No reversal needed.
If ITC was partially availed → Reverse only to the extent availed.
💡 Example:
If GST on an invoice is ₹18,000 but the business availed only ₹6,000 as ITC, then on amendment, they only need to reverse ₹6,000, not the full amount.
This change avoids excess reversals and ensures accuracy.
🔹 Save Remarks for Better Communication
While rejecting or keeping records pending, taxpayers will soon be able to add remarks.
Remarks will show up in GSTR-2B for recipients.
Suppliers can view them in their Outward Supplies dashboard.
💡 Example:
If a buyer rejects a debit note, they can add a remark like: “Invoice mismatch – please check values.” This directly alerts the supplier to fix the issue.
🔹 Important Implementation Dates
Effective from: October 2025 tax period.
Due date for pending action: Based on the tax period when the supplier shared the document.
⚠️ These changes are prospective only – they will apply to records uploaded by suppliers after rollout.
✅ Why This Matters for You
Time-saving: No pressure to accept/reject records immediately.
Accuracy: Reverse ITC only when and how much is necessary.
Transparency: Remarks improve buyer-supplier communication.
📌 Action Point: Businesses should familiarize themselves with these updates before filing returns for the October 2025 tax period.
