Say goodbye to fraud vulnerability and inaccuracy with the custom Invoice Management System (IMS) of inoday, integrated with Microsoft Dynamics 365 Business Central. It will enable taxpayers to efficiently address invoice discrepancies issues with their suppliers.
Taxpayers can also compare the invoices to match with those issued by their suppliers. It will help them to provide the correct amount of Input Tax Credit (ITC).
Goods and Services Tax Network (GSTN) was suffering from the problem of thousands of fake ITC claims every financial year. So, it is developing a new feature-rich functionality called Invoice Management System (IMS). With this, Indian taxpayers can either accept or reject an invoice. Also, they can keep that in the system to use it later.
This IMS provides a comprehensive solution by enabling taxpayers to validate invoices in real-time, ensuring the legitimacy of Input Tax Credit claims before they are processed. Businesses can now verify the authenticity of invoices, match them with their purchase records, and maintain a clear audit trail, significantly reducing the risk of non-compliance and potential penalties.
To find the solution to fake ITC claims, GSTN rolled out a new portal Invoice Management System GST. The following are some of the major reasons, making it mandatory for Taxpayers to have IMS.
Invoice Management System by GST is a sophisticated tool to help taxpayers manage, track, and validate invoices. This system is well-known for ensuring “acceptance, rejection, or keeping hold of invoices”.
Available from October 1, 2024, this facility is one of the major changes in the ITC ecosystem of GST. It will allow the GST portal to make only the accepted invoice a part of their GSTR-2B (Goods and Services Tax Return–2B) in their ITC. It will provide an opportunity for the taxpayers in which they can review the genuineness of incoming invoices.
Here’s an example for you to understand it, Mr. X uses the Invoice Management System GST to validate and track invoices from his suppliers in real time so that only verified invoices contribute to his Input Tax Credit (ITC) claims in GSTR-2B, thereby enhancing accuracy and reducing compliance risks.
To increase compliance and accurate invoice processing, inoday has developed its Invoice Management System (IMS) readily integrated with Microsoft Dynamics Business Central. This system enables taxpayers (recipients) to leverage the functionality of GST’s IMS functionality without any requirement of logging in to the GST portal.
The advanced IMS seamlessly automates the entire invoice lifecycle, from receipt to payment, while ensuring complete GST compliance. This comprehensive solution not only reduces manual effort and errors but also provides detailed audit trials and reporting capabilities. It is helpful for businesses to maintain regulatory compliance while improving their accounts payable efficiency.
Accepted records will become part of ‘ITC Available’ section of respective GSTR 2B. GST on accepted records will auto-populate in GSTR 3B as eligible ITC.
Rejected records will become part of ‘ITC Rejected’ section of respective GSTR 2B. ITC of rejected records will not auto-populate in GSTR 3B.
Pending records will not become part of GSTR 2B and GSTR 3B. Such records will remain on IMS dashboard till the time same is accepted or rejected.
