Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
Notification 16/2025-Central Tax, dated 17 September 2025, substituted Section 38 of the CGST Act. The effect: from the October 2025 tax period, GSTR-2B — and therefore the ITC you may lawfully claim — is built from the records you accept (or are deemed to accept) in IMS. IMS acceptance is now the statutory basis of your credit, not an optional reconciliation aid. This is the first half of a broader tightening; ITC hard-locking in GSTR-3B (Table 4) is expected around July 2026, which will bind your claimable credit to this GSTR-2B even more rigidly.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
The new statutory link (Section 38, Notification 16/2025)
Notification 16/2025-Central Tax, dated 17 September 2025, substituted Section 38 of the CGST Act. The effect: from the October 2025 tax period, GSTR-2B — and therefore the ITC you may lawfully claim — is built from the records you accept (or are deemed to accept) in IMS. IMS acceptance is now the statutory basis of your credit, not an optional reconciliation aid. This is the first half of a broader tightening; ITC hard-locking in GSTR-3B (Table 4) is expected around July 2026, which will bind your claimable credit to this GSTR-2B even more rigidly.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
The “deemed accepted” default is the trap: if you never open IMS, everything a supplier filed — including a wrong or inflated invoice — is treated as accepted and lands in your GSTR-2B. Conversely, a genuine credit you forget to accept can still be pulled in by default, but you lose the control the system is designed to give you.
The new statutory link (Section 38, Notification 16/2025)
Notification 16/2025-Central Tax, dated 17 September 2025, substituted Section 38 of the CGST Act. The effect: from the October 2025 tax period, GSTR-2B — and therefore the ITC you may lawfully claim — is built from the records you accept (or are deemed to accept) in IMS. IMS acceptance is now the statutory basis of your credit, not an optional reconciliation aid. This is the first half of a broader tightening; ITC hard-locking in GSTR-3B (Table 4) is expected around July 2026, which will bind your claimable credit to this GSTR-2B even more rigidly.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
| Action | What happens | When to use it |
|---|---|---|
| Accept | The record flows into GSTR-2B as eligible ITC | Invoice is genuine, matches your purchase, and you can claim it |
| Reject | The record is excluded from GSTR-2B — no credit | Wrong GSTIN, not your purchase, duplicate, or incorrect details |
| Pending | Held over — not in this period’s GSTR-2B, carried to a later one | Goods/services not yet received; you need time to verify |
| No action | Deemed accepted — flows into GSTR-2B automatically | Only safe once you’ve reviewed and are happy with everything |
The “deemed accepted” default is the trap: if you never open IMS, everything a supplier filed — including a wrong or inflated invoice — is treated as accepted and lands in your GSTR-2B. Conversely, a genuine credit you forget to accept can still be pulled in by default, but you lose the control the system is designed to give you.
The new statutory link (Section 38, Notification 16/2025)
Notification 16/2025-Central Tax, dated 17 September 2025, substituted Section 38 of the CGST Act. The effect: from the October 2025 tax period, GSTR-2B — and therefore the ITC you may lawfully claim — is built from the records you accept (or are deemed to accept) in IMS. IMS acceptance is now the statutory basis of your credit, not an optional reconciliation aid. This is the first half of a broader tightening; ITC hard-locking in GSTR-3B (Table 4) is expected around July 2026, which will bind your claimable credit to this GSTR-2B even more rigidly.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
The three actions
| Action | What happens | When to use it |
|---|---|---|
| Accept | The record flows into GSTR-2B as eligible ITC | Invoice is genuine, matches your purchase, and you can claim it |
| Reject | The record is excluded from GSTR-2B — no credit | Wrong GSTIN, not your purchase, duplicate, or incorrect details |
| Pending | Held over — not in this period’s GSTR-2B, carried to a later one | Goods/services not yet received; you need time to verify |
| No action | Deemed accepted — flows into GSTR-2B automatically | Only safe once you’ve reviewed and are happy with everything |
The “deemed accepted” default is the trap: if you never open IMS, everything a supplier filed — including a wrong or inflated invoice — is treated as accepted and lands in your GSTR-2B. Conversely, a genuine credit you forget to accept can still be pulled in by default, but you lose the control the system is designed to give you.
The new statutory link (Section 38, Notification 16/2025)
Notification 16/2025-Central Tax, dated 17 September 2025, substituted Section 38 of the CGST Act. The effect: from the October 2025 tax period, GSTR-2B — and therefore the ITC you may lawfully claim — is built from the records you accept (or are deemed to accept) in IMS. IMS acceptance is now the statutory basis of your credit, not an optional reconciliation aid. This is the first half of a broader tightening; ITC hard-locking in GSTR-3B (Table 4) is expected around July 2026, which will bind your claimable credit to this GSTR-2B even more rigidly.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
IMS is a function on the GST portal that gives the buyer a live view of every B2B document a supplier saves or files in GSTR-1, GSTR-1A or the Invoice Furnishing Facility (IFF) — before your GSTR-2B is generated. For each record you choose one of three actions, and your choice decides whether that credit reaches your GSTR-2B.
The three actions
| Action | What happens | When to use it |
|---|---|---|
| Accept | The record flows into GSTR-2B as eligible ITC | Invoice is genuine, matches your purchase, and you can claim it |
| Reject | The record is excluded from GSTR-2B — no credit | Wrong GSTIN, not your purchase, duplicate, or incorrect details |
| Pending | Held over — not in this period’s GSTR-2B, carried to a later one | Goods/services not yet received; you need time to verify |
| No action | Deemed accepted — flows into GSTR-2B automatically | Only safe once you’ve reviewed and are happy with everything |
The “deemed accepted” default is the trap: if you never open IMS, everything a supplier filed — including a wrong or inflated invoice — is treated as accepted and lands in your GSTR-2B. Conversely, a genuine credit you forget to accept can still be pulled in by default, but you lose the control the system is designed to give you.
The new statutory link (Section 38, Notification 16/2025)
Notification 16/2025-Central Tax, dated 17 September 2025, substituted Section 38 of the CGST Act. The effect: from the October 2025 tax period, GSTR-2B — and therefore the ITC you may lawfully claim — is built from the records you accept (or are deemed to accept) in IMS. IMS acceptance is now the statutory basis of your credit, not an optional reconciliation aid. This is the first half of a broader tightening; ITC hard-locking in GSTR-3B (Table 4) is expected around July 2026, which will bind your claimable credit to this GSTR-2B even more rigidly.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
What IMS actually is
IMS is a function on the GST portal that gives the buyer a live view of every B2B document a supplier saves or files in GSTR-1, GSTR-1A or the Invoice Furnishing Facility (IFF) — before your GSTR-2B is generated. For each record you choose one of three actions, and your choice decides whether that credit reaches your GSTR-2B.
The three actions
| Action | What happens | When to use it |
|---|---|---|
| Accept | The record flows into GSTR-2B as eligible ITC | Invoice is genuine, matches your purchase, and you can claim it |
| Reject | The record is excluded from GSTR-2B — no credit | Wrong GSTIN, not your purchase, duplicate, or incorrect details |
| Pending | Held over — not in this period’s GSTR-2B, carried to a later one | Goods/services not yet received; you need time to verify |
| No action | Deemed accepted — flows into GSTR-2B automatically | Only safe once you’ve reviewed and are happy with everything |
The “deemed accepted” default is the trap: if you never open IMS, everything a supplier filed — including a wrong or inflated invoice — is treated as accepted and lands in your GSTR-2B. Conversely, a genuine credit you forget to accept can still be pulled in by default, but you lose the control the system is designed to give you.
The new statutory link (Section 38, Notification 16/2025)
Notification 16/2025-Central Tax, dated 17 September 2025, substituted Section 38 of the CGST Act. The effect: from the October 2025 tax period, GSTR-2B — and therefore the ITC you may lawfully claim — is built from the records you accept (or are deemed to accept) in IMS. IMS acceptance is now the statutory basis of your credit, not an optional reconciliation aid. This is the first half of a broader tightening; ITC hard-locking in GSTR-3B (Table 4) is expected around July 2026, which will bind your claimable credit to this GSTR-2B even more rigidly.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
What IMS actually is
IMS is a function on the GST portal that gives the buyer a live view of every B2B document a supplier saves or files in GSTR-1, GSTR-1A or the Invoice Furnishing Facility (IFF) — before your GSTR-2B is generated. For each record you choose one of three actions, and your choice decides whether that credit reaches your GSTR-2B.
The three actions
| Action | What happens | When to use it |
|---|---|---|
| Accept | The record flows into GSTR-2B as eligible ITC | Invoice is genuine, matches your purchase, and you can claim it |
| Reject | The record is excluded from GSTR-2B — no credit | Wrong GSTIN, not your purchase, duplicate, or incorrect details |
| Pending | Held over — not in this period’s GSTR-2B, carried to a later one | Goods/services not yet received; you need time to verify |
| No action | Deemed accepted — flows into GSTR-2B automatically | Only safe once you’ve reviewed and are happy with everything |
The “deemed accepted” default is the trap: if you never open IMS, everything a supplier filed — including a wrong or inflated invoice — is treated as accepted and lands in your GSTR-2B. Conversely, a genuine credit you forget to accept can still be pulled in by default, but you lose the control the system is designed to give you.
The new statutory link (Section 38, Notification 16/2025)
Notification 16/2025-Central Tax, dated 17 September 2025, substituted Section 38 of the CGST Act. The effect: from the October 2025 tax period, GSTR-2B — and therefore the ITC you may lawfully claim — is built from the records you accept (or are deemed to accept) in IMS. IMS acceptance is now the statutory basis of your credit, not an optional reconciliation aid. This is the first half of a broader tightening; ITC hard-locking in GSTR-3B (Table 4) is expected around July 2026, which will bind your claimable credit to this GSTR-2B even more rigidly.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
For years, input tax credit was something you claimed and hoped survived a later mismatch check. From October 2025 that changed. The Invoice Management System (IMS) now sits between your suppliers’ filings and your GSTR-2B, and — following an amendment to Section 38 — the credit you can legally claim is tied to the invoices you accept on it. Ignoring IMS is no longer harmless housekeeping; it directly decides how much ITC you get. This guide explains what IMS is, the accept/reject/pending mechanics, the new statutory link, and the monthly workflow that keeps your credit intact. Position as of FY 2026-27.
At a glance
- IMS is a GST-portal dashboard where you Accept, Reject, or keep Pending every invoice, debit note and credit note your suppliers file.
- Notification 16/2025-CT (17 Sep 2025) substituted Section 38 — from the October 2025 period, ITC is legally tied to accepted IMS records.
- Only records you accept (or are deemed to accept) flow into GSTR-2B as eligible credit.
- No action = deemed accepted — so inaction has consequences in both directions.
- Credit notes and downward amendments can now be kept Pending for only one tax period.
- Take your actions, then recompute GSTR-2B before you file GSTR-3B.
What IMS actually is
IMS is a function on the GST portal that gives the buyer a live view of every B2B document a supplier saves or files in GSTR-1, GSTR-1A or the Invoice Furnishing Facility (IFF) — before your GSTR-2B is generated. For each record you choose one of three actions, and your choice decides whether that credit reaches your GSTR-2B.
The three actions
| Action | What happens | When to use it |
|---|---|---|
| Accept | The record flows into GSTR-2B as eligible ITC | Invoice is genuine, matches your purchase, and you can claim it |
| Reject | The record is excluded from GSTR-2B — no credit | Wrong GSTIN, not your purchase, duplicate, or incorrect details |
| Pending | Held over — not in this period’s GSTR-2B, carried to a later one | Goods/services not yet received; you need time to verify |
| No action | Deemed accepted — flows into GSTR-2B automatically | Only safe once you’ve reviewed and are happy with everything |
The “deemed accepted” default is the trap: if you never open IMS, everything a supplier filed — including a wrong or inflated invoice — is treated as accepted and lands in your GSTR-2B. Conversely, a genuine credit you forget to accept can still be pulled in by default, but you lose the control the system is designed to give you.
The new statutory link (Section 38, Notification 16/2025)
Notification 16/2025-Central Tax, dated 17 September 2025, substituted Section 38 of the CGST Act. The effect: from the October 2025 tax period, GSTR-2B — and therefore the ITC you may lawfully claim — is built from the records you accept (or are deemed to accept) in IMS. IMS acceptance is now the statutory basis of your credit, not an optional reconciliation aid. This is the first half of a broader tightening; ITC hard-locking in GSTR-3B (Table 4) is expected around July 2026, which will bind your claimable credit to this GSTR-2B even more rigidly.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
For years, input tax credit was something you claimed and hoped survived a later mismatch check. From October 2025 that changed. The Invoice Management System (IMS) now sits between your suppliers’ filings and your GSTR-2B, and — following an amendment to Section 38 — the credit you can legally claim is tied to the invoices you accept on it. Ignoring IMS is no longer harmless housekeeping; it directly decides how much ITC you get. This guide explains what IMS is, the accept/reject/pending mechanics, the new statutory link, and the monthly workflow that keeps your credit intact. Position as of FY 2026-27.
At a glance
- IMS is a GST-portal dashboard where you Accept, Reject, or keep Pending every invoice, debit note and credit note your suppliers file.
- Notification 16/2025-CT (17 Sep 2025) substituted Section 38 — from the October 2025 period, ITC is legally tied to accepted IMS records.
- Only records you accept (or are deemed to accept) flow into GSTR-2B as eligible credit.
- No action = deemed accepted — so inaction has consequences in both directions.
- Credit notes and downward amendments can now be kept Pending for only one tax period.
- Take your actions, then recompute GSTR-2B before you file GSTR-3B.
What IMS actually is
IMS is a function on the GST portal that gives the buyer a live view of every B2B document a supplier saves or files in GSTR-1, GSTR-1A or the Invoice Furnishing Facility (IFF) — before your GSTR-2B is generated. For each record you choose one of three actions, and your choice decides whether that credit reaches your GSTR-2B.
The three actions
| Action | What happens | When to use it |
|---|---|---|
| Accept | The record flows into GSTR-2B as eligible ITC | Invoice is genuine, matches your purchase, and you can claim it |
| Reject | The record is excluded from GSTR-2B — no credit | Wrong GSTIN, not your purchase, duplicate, or incorrect details |
| Pending | Held over — not in this period’s GSTR-2B, carried to a later one | Goods/services not yet received; you need time to verify |
| No action | Deemed accepted — flows into GSTR-2B automatically | Only safe once you’ve reviewed and are happy with everything |
The “deemed accepted” default is the trap: if you never open IMS, everything a supplier filed — including a wrong or inflated invoice — is treated as accepted and lands in your GSTR-2B. Conversely, a genuine credit you forget to accept can still be pulled in by default, but you lose the control the system is designed to give you.
The new statutory link (Section 38, Notification 16/2025)
Notification 16/2025-Central Tax, dated 17 September 2025, substituted Section 38 of the CGST Act. The effect: from the October 2025 tax period, GSTR-2B — and therefore the ITC you may lawfully claim — is built from the records you accept (or are deemed to accept) in IMS. IMS acceptance is now the statutory basis of your credit, not an optional reconciliation aid. This is the first half of a broader tightening; ITC hard-locking in GSTR-3B (Table 4) is expected around July 2026, which will bind your claimable credit to this GSTR-2B even more rigidly.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.
For years, input tax credit was something you claimed and hoped survived a later mismatch check. From October 2025 that changed. The Invoice Management System (IMS) now sits between your suppliers’ filings and your GSTR-2B, and — following an amendment to Section 38 — the credit you can legally claim is tied to the invoices you accept on it. Ignoring IMS is no longer harmless housekeeping; it directly decides how much ITC you get. This guide explains what IMS is, the accept/reject/pending mechanics, the new statutory link, and the monthly workflow that keeps your credit intact. Position as of FY 2026-27.
At a glance
- IMS is a GST-portal dashboard where you Accept, Reject, or keep Pending every invoice, debit note and credit note your suppliers file.
- Notification 16/2025-CT (17 Sep 2025) substituted Section 38 — from the October 2025 period, ITC is legally tied to accepted IMS records.
- Only records you accept (or are deemed to accept) flow into GSTR-2B as eligible credit.
- No action = deemed accepted — so inaction has consequences in both directions.
- Credit notes and downward amendments can now be kept Pending for only one tax period.
- Take your actions, then recompute GSTR-2B before you file GSTR-3B.
What IMS actually is
IMS is a function on the GST portal that gives the buyer a live view of every B2B document a supplier saves or files in GSTR-1, GSTR-1A or the Invoice Furnishing Facility (IFF) — before your GSTR-2B is generated. For each record you choose one of three actions, and your choice decides whether that credit reaches your GSTR-2B.
The three actions
| Action | What happens | When to use it |
|---|---|---|
| Accept | The record flows into GSTR-2B as eligible ITC | Invoice is genuine, matches your purchase, and you can claim it |
| Reject | The record is excluded from GSTR-2B — no credit | Wrong GSTIN, not your purchase, duplicate, or incorrect details |
| Pending | Held over — not in this period’s GSTR-2B, carried to a later one | Goods/services not yet received; you need time to verify |
| No action | Deemed accepted — flows into GSTR-2B automatically | Only safe once you’ve reviewed and are happy with everything |
The “deemed accepted” default is the trap: if you never open IMS, everything a supplier filed — including a wrong or inflated invoice — is treated as accepted and lands in your GSTR-2B. Conversely, a genuine credit you forget to accept can still be pulled in by default, but you lose the control the system is designed to give you.
The new statutory link (Section 38, Notification 16/2025)
Notification 16/2025-Central Tax, dated 17 September 2025, substituted Section 38 of the CGST Act. The effect: from the October 2025 tax period, GSTR-2B — and therefore the ITC you may lawfully claim — is built from the records you accept (or are deemed to accept) in IMS. IMS acceptance is now the statutory basis of your credit, not an optional reconciliation aid. This is the first half of a broader tightening; ITC hard-locking in GSTR-3B (Table 4) is expected around July 2026, which will bind your claimable credit to this GSTR-2B even more rigidly.
One key restriction: Pending has a shelf life
You can no longer park a record on Pending indefinitely. For credit notes and certain downward amendments, Pending is allowed for only one tax period — after that you must accept or reject. This stops businesses from sitting on credit notes to defer the corresponding ITC reduction. Review these promptly each month.
Your monthly IMS workflow
- Open the IMS dashboard after suppliers have filed GSTR-1/IFF for the period.
- Match each record to your purchase register — Accept what’s genuine and received, Reject what’s wrong, keep Pending only what you can’t yet verify.
- Clear any Pending credit notes / downward amendments within their one-period window.
- Recompute GSTR-2B so it reflects your actions.
- Claim ITC in GSTR-3B strictly from the recomputed GSTR-2B — and remember the Section 17(5) blocks and Rule 42/43 reversals still apply on top.
Common mistakes to avoid
- Never opening IMS — everything gets deemed accepted, wrong invoices included.
- Rejecting a genuine invoice by mistake — you lose that credit until it’s corrected and re-accepted.
- Letting Pending credit notes lapse — they can only sit for one tax period now.
- Claiming ITC not in the recomputed GSTR-2B — still disallowed, still reversible with 18% interest.
- Not chasing non-filing suppliers — if they don’t file, nothing appears in IMS and you get no credit.
Frequently asked questions
Q: If I do nothing on IMS, do I lose my credit? A: No — inaction is treated as “deemed accepted”, so genuine invoices still flow into GSTR-2B. The risk is the opposite: wrong invoices also get accepted by default, so you should still review.
Q: Is IMS mandatory now? A: In practice, yes. Since the Section 38 substitution (Notification 16/2025), your GSTR-2B and eligible ITC are built from IMS records from October 2025 onwards.
Q: How long can I keep an invoice Pending? A: Regular invoices can be held while you verify, but credit notes and specified downward amendments can be kept Pending for only one tax period.
Q: I rejected an invoice by accident. What now? A: Ask the supplier’s record to be available again / amended, then accept it in a later period so it flows into that period’s GSTR-2B.
Q: Does IMS replace GSTR-2B? A: No — it feeds it. IMS is the action layer; GSTR-2B is the resulting statement you claim ITC from.
Clean invoices make your buyers’ IMS painless
IMS rewards accuracy at the source: correct GSTIN, right HSN, matching values mean your buyers accept in one click instead of rejecting. GST Bill Maker produces clean, correctly-taxed invoices and a GSTR-1-ready summary, so what you file is what your customers see in their IMS. Browse the Knowledge Center for more GST compliance guides.