Most businesses know IMS exists. Far fewer understand what clicking “Accept,” “Reject,” or “Pending” actually does to their ITC — and why a wrong click is harder to undo than it looks.
The Invoice Management System (IMS) became mandatory for all GST-registered businesses from 1 April 2026. Every invoice your supplier uploads to their GSTR-1 now appears in your IMS dashboard. What you do with it — Accept, Reject, or Pending — directly controls what Input Tax Credit you can claim in GSTR-3B. Inaction means deemed acceptance.
Confused about IMS and worried you’ve already made a wrong call? WhatsApp us and we’ll walk through your IMS dashboard with you.
Quick Summary — The Three IMS Actions and Their Effect
| Action | What Happens | When to Use |
| Accept | Invoice moves to GSTR-2B as eligible ITC | You received the goods/services, invoice is correct |
| Reject | Invoice excluded from GSTR-2B; supplier sees rejection | Invoice is wrong, goods not received, fraud suspected |
| Pending | Invoice deferred to next month’s GSTR-2B | Invoice under dispute, awaiting documents |
| No Action (Inaction) | Treated as Deemed Accepted — flows into GSTR-2B automatically | Avoid this — review actively instead |
💡 TaxKitab Tip Never mass-accept all invoices in IMS without reviewing them. Accepting a fake or incorrect invoice means you’ve claimed ITC the department can subsequently deny with interest. In our experience, businesses that auto-accept everything to save time end up with exactly the kind of ITC mismatch that generates DRC-01 notices. Spend 30 minutes on IMS before the 14th of every month — it’s far cheaper than responding to a notice later. — From our GST Notices Guide (Book 2). Available at taxkitab.com/books (₹179)
The Timeline That Controls Everything
Suppliers file GSTR-1 by the 11th of the month. GSTR-2B is generated on the 14th based on your IMS actions up to that point. You file GSTR-3B by the 20th. This means your IMS review window is the 11th to the 13th — three days, every month. Any action you take after the 14th requires you to click “Recompute GSTR-2B” before filing GSTR-3B. Once you file GSTR-3B, your IMS actions for that period are frozen — no changes possible.
What “Reject” Actually Does — and When Not to Use It
Rejecting an invoice removes it from your GSTR-2B. The supplier gets notified. But rejection doesn’t make the invoice disappear — the supplier still has it on their GSTR-1 as a filed outward supply. This means rejecting incorrectly can create a mismatch on the supplier’s side. Use rejection when: the invoice is completely wrong (wrong GSTIN, goods never received, clear fraud), or the value is so materially incorrect that a credit note cannot fix it. Don’t reject just because you want to negotiate or delay payment — that’s not what rejection is for.
The “Pending” Option Has a Time Limit
Keeping an invoice Pending sounds like a safe middle ground. But there’s a limit. For most pending invoices, monthly filers can keep them pending for one tax period — after that, the system either auto-accepts them or forces a decision. Don’t use Pending as a permanent parking space. If an invoice is genuinely disputed, resolve the dispute with the supplier directly while the invoice sits pending, not after the limit passes.
What Hard ITC Blocking Means From April 2026
Before IMS became mandatory, you could claim ITC in GSTR-3B even if the invoice wasn’t fully reflected in GSTR-2B, with a tolerance of up to 5%. That tolerance is gone. From 1 April 2026, ITC you claim in GSTR-3B must correspond exactly to what’s in your GSTR-2B based on your IMS actions. The portal blocks filing if claimed ITC exceeds GSTR-2B. This is the “Zero Mismatch Policy” — and it has no exceptions.
The Monthly IMS Workflow That Takes Under 30 Minutes
- Log in to gst.gov.in on the 12th or 13th of each month.
- Navigate to Services → Returns → Invoice Management System (IMS).
- Check the Inward Supplies tab. Review each invoice against your purchase register.
- Accept invoices that match your books. Reject genuine errors. Mark as Pending only where a specific document is missing.
- After the 14th, if you take any action, click “Recompute GSTR-2B” before filing GSTR-3B.
- Cross-check your final GSTR-2B against accepted invoices before filing.
Frequently Asked Questions
Does IMS apply to Composition Scheme taxpayers?
No. IMS is mandatory for regular GST-registered taxpayers who file GSTR-3B. Composition scheme taxpayers are excluded.
What happens to RCM (Reverse Charge Mechanism) invoices in IMS?
RCM invoices do not appear in IMS. They flow directly into GSTR-2B and trigger self-assessment under reverse charge in GSTR-3B — no IMS action needed or possible for these.
I accepted an invoice by mistake. Can I reverse it?
You can reverse it only before filing GSTR-3B for that period. Once GSTR-3B is filed, the action is frozen. If you’ve already filed and claimed ITC on an incorrectly accepted invoice, you must reverse the ITC in a subsequent GSTR-3B filing.
Does IMS apply to import of goods?
Yes, from the October 2025 tax period onward. Bills of Entry for imports, including from SEZs, now appear in IMS. Service imports continue to flow directly into GSTR-2B without IMS action.
Should I compare IMS with my purchase register every month?
Yes.Before accepting invoices in IMS, businesses should compare supplier invoices with their purchase register, goods receipt records, and vendor ledger. This helps identify duplicate invoices, incorrect GSTINs, wrong tax amounts, or invoices for goods or services that have not yet been received.
What happens if my supplier uploads an invoice after I have already filed GSTR-3B?
The invoice generally becomes available in a subsequent tax period. Subject to the applicable provisions of the CGST Act and Rules, eligible ITC may generally be claimed in the relevant return after the invoice appears in your records and other statutory conditions are satisfied.
References
- CGST Act, 2017 — Section 38 (as substituted by Notification 16/2025-Central Tax, 17 September 2025)
- CGST Rules — Rule 67B (inserted by Notification 18/2025-Central Tax, 31 October 2025)
- GSTN Advisory on IMS, tutorial.gst.gov.in
- Notification No. 16/2025 – Central Tax
- Notification No. 18/2025 – Central Tax
Last Updated: 09 July 2026
Reviewed By: TaxKitab Team
IMS works alongside several other compliance changes we’ve covered. The GSTR-3B vs GSTR-1 mismatch post explains what happens upstream when supplier filings don’t match. The ITC mismatch post covers what IMS is now designed to prevent. And the GSTR-9/9C mistakes post shows how 12 months of IMS decisions roll into your annual return.
Related Reading
Need help with this? TaxKitab handles GST Return Filing for businesses across India and overseas. You may also find our Accounting & Bookkeeping useful. Talk to us.
Call or WhatsApp: +91 7448200422 Email: info@taxkitab.com Website: taxkitab.com See our GST Return Filing service or Contact us. For a deeper dive on ITC claims and errors, see our GST Book 1 (₹179) and GST Notices & Compliance Survival Guide (₹179).
