Key points
- IMS has been live on the GST portal since 1 October 2024. Bills appear as soon as the supplier saves them in GSTR-1, IFF or GSTR-1A.[1]
- No action = deemed accepted when GSTR-2B is generated on the 14th. Accepted bills go to "ITC available"; rejected ones to "ITC rejected"; pending ones stay out of 2B and 3B.[1]
- You can act until you file GSTR-3B for that month. Any change after the 14th means you must recompute 2B.[1]
- Pending is not allowed for some records, mainly original credit notes; from the October 2025 period, credit notes can be kept pending for one tax period.[1][2]
- The 57th GST Council (8 Oct 2026) recommended writing IMS into the CGST Rules (new rule 60(6A)). That is a recommendation, not yet law.[3]
How a bill moves through IMS
- Your supplier saves the bill in GSTR-1, IFF or GSTR-1A. It appears in your IMS dashboard straight away.[1]
- You accept, reject, keep pending or leave it. If the supplier edits the bill before filing, your action resets.[1]
- On the 14th of the next month the portal makes a draft GSTR-2B from filed bills and your actions. Bills only saved, not filed, are not counted.[1]
- Accepted and deemed-accepted ITC auto-fills GSTR-3B. You can still change actions until you file 3B, then recompute 2B.[1]
- When you file GSTR-3B, accepted and rejected records leave IMS. Pending ones stay for a later month.[1]
One more rule matters for anyone who files late: 2B is sequential. The portal will not make next month's 2B until this month's GSTR-3B is filed.[1]
What each action does
| Action | Goes to GSTR-2B as | Auto-fills GSTR-3B? | Use it when |
|---|---|---|---|
| No action | ITC available (deemed accepted) | Yes | The bill is genuine and correct. This is the default for most bills |
| Accept | ITC available | Yes | You want to confirm it explicitly, for example after a check |
| Reject | ITC rejected | No | The bill is not yours, is a duplicate, or the goods never came |
| Pending | Not in 2B | No | The bill is real but you are not ready to claim it this month |
Rejecting a bill tells the supplier, who can see your action, that something is wrong.[1] Use it for bills you really dispute. For a bill that is correct but whose goods arrive next month, pending is the right choice, because section 16(2)(b) lets you take credit only once the goods are received.[4]
When pending is not allowed
The original IMS advisory blocked "pending" for: an original credit note; an upward amendment of a credit note; a downward amendment of a credit note whose original you rejected; and a downward amendment of an invoice or debit note whose original you accepted and claimed in a filed GSTR-3B.[1] From the October 2025 tax period, GSTN allowed specified records, including credit notes, to be kept pending for one tax period: one month for monthly filers, one quarter for quarterly filers.[2]
Credit notes: the part that hits the supplier
If you reject a supplier's credit note, the supplier's output tax goes back up in their next GSTR-3B.[1] This links to section 34(2) of the CGST Act: from 1 October 2025 a supplier cannot reduce output tax on a credit note unless the registered recipient has reversed the matching ITC.[5] Since October 2025, IMS also lets you declare how much ITC you actually took on the original bill, so you reverse only that much, or nothing if you never claimed it.[2]
Worked example: one week of the purchase desk
Kaveri Agencies, Coimbatore (sample firm), an FMCG distributor filing monthly, opens IMS on 6 November 2026 for the October period. It sees 62 bills worth ₹38,40,000 taxable, and two credit notes.
| Record | Taxable value | GST | Action | Why |
|---|---|---|---|---|
| 58 bills, all match the books | ₹35,90,000 | ₹4,30,800 | No action | Deemed accepted on 14 Nov |
| Bill TN/882, goods arrive 10 Nov | ₹1,20,000 | ₹21,600 | Pending | Goods not yet received in October |
| Bill 4471, booked twice by the supplier | ₹80,000 | ₹14,400 | Reject | Duplicate; supplier will cancel one |
| Bill S-19, rate 18% instead of 5% | ₹50,000 | ₹9,000 | Reject | Supplier to correct; you claim the corrected bill |
| Credit note CN-31 | ₹40,000 | −₹7,200 | Accept | Scheme credit agreed; reverse ₹7,200 |
| Credit note CN-32 | ₹25,000 | −₹4,500 | Pending | Allowed for one tax period since Oct 2025; checking the scheme claim |
ITC flowing into the October 2B is ₹4,30,800 − ₹7,200 = ₹4,23,600. Bill TN/882 waits for November; the two rejected bills come back corrected; CN-32 must be accepted or rejected by the November period.[2] If Kaveri changes any action after 14 November, it recomputes 2B before filing GSTR-3B on the 20th.[1]
A weekly routine that works
- Monday: filter IMS by supplier and match new bills with goods received notes.
- Reject only disputed bills, with a remark, and message the supplier the same day.
- Keep pending only bills whose goods have not arrived, or credit notes you are still checking.
- Before the 14th: clear disputes with your top 10 suppliers by value.
- After the 14th: if you changed anything, recompute GSTR-2B, then file GSTR-3B.
- Month end: list pending records and their deadlines so nothing stays pending by mistake.
What the 57th GST Council proposed
On 8 October 2026 the GST Council recommended a package to reduce return mismatches, including a new sub-rule 60(6A) to give IMS a legal footing (accept, reject or keep pending, with a set period for pending credit notes), and an alternative mechanism for correcting liability and ITC from the April 2027 return. The Council also asked for public consultation first.[3] None of this is in force yet; we will update this guide when it is notified.
How Moharbill helps
- Free today: match the downloaded 2B with your purchase register in the GSTR-2B tool, in your browser.
- Purchase bills are recorded with goods received dates, so you know which portal bills to keep pending.
- Coming in v1.1: an IMS inbox inside Moharbill with accept, reject and pending, supplier follow-ups and a recompute reminder. It joins Pro and Business at no extra cost.
Frequently asked questions
What is IMS in GST?
The Invoice Management System is a facility on the GST portal, live since 1 October 2024, where a recipient can accept, reject or keep pending each bill reported by suppliers before GSTR-2B is generated.
What happens if I don't act on a bill in IMS?
It is deemed accepted when GSTR-2B is generated on the 14th, and its ITC flows into 2B and auto-fills GSTR-3B.
Until when can I change my action in IMS?
Until you file GSTR-3B for that period. If you act after the 14th, recompute GSTR-2B before filing.
Can I keep a credit note pending in IMS?
From the October 2025 tax period, specified records including credit notes can be kept pending for one tax period: one month for monthly filers or one quarter for quarterly filers.
Does rejecting a bill affect my supplier?
The supplier can see your action. For rejected credit notes, the supplier's output tax liability goes back up in their next GSTR-3B.
Is IMS mandatory?
GSTN describes IMS as a facility: you only need to act to reject or keep a record pending, because no action counts as acceptance. The 57th GST Council has recommended adding IMS to the CGST Rules; that has not been notified yet.
Sources
All read on 17 Oct 2026.
- GSTN, advisory on the Invoice Management System (flow, actions, pending exclusions, recompute, sequential 2B, supplier liability on rejected credit notes). tutorial.gst.gov.in
- GSTN advisory of 23 Sep 2025 on IMS changes from the October 2025 tax period, as summarised by EY India (25 Sep 2025). Secondary source. ey.com
- PIB, "Recommendations of the 57th Meeting of the GST Council", 8 Oct 2026, para A2.5 (rule 60(6A), April 2027 return). gstcouncil.gov.in
- CGST Act 2017, section 16(2)(b), CBIC. taxinformation.cbic.gov.in
- CGST Act 2017, section 34(2) and its proviso, CBIC. taxinformation.cbic.gov.in
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