GSTN Introduces Key Changes in Invoice Management System for October 2025
The Goods and Services Tax Network (GSTN) has announced significant changes in the Invoice Management System (IMS) to simplify the taxation process and reduce compliance burdens for businesses. These changes will be effective from the October 2025 tax period.
GstnInvoice Management SystemInput Tax CreditReal EstateTax ComplianceReal EstateSep 23, 2025
According to the advisory issued on September 23, taxpayers will now have more flexibility in handling credit notes, invoices, and Input Tax Credit (ITC) reversals.
Key Changes Introduced
1. Option to Keep Certain Records Pending
Taxpayers can now keep specified records pending for a limited period.
- For monthly filers, this option is available for one tax period (a month).
- For quarterly filers, it is also available for one tax period (a quarter).
The records that can be kept pending are:
- Credit notes or upward amendments of credit notes.
- Downward amendment of credit notes where the original credit note was rejected.
- Downward amendment of invoices or debit notes only if the original invoice has been accepted and GSTR-3B has been filed.
- Downward amendment of ECO-documents only if the original document has been accepted and GSTR-3B has been filed.
This change gives taxpayers more time to handle corrections without rushing into immediate action.
2. Declaring ITC Reduction Amount
The government has clarified that:
- If a recipient has not availed Input Tax Credit (ITC) on a given invoice, no reversal is required.
- If ITC has been partially availed, reversal needs to be done only to the extent of the ITC actually taken.
To process this, IMS now provides a feature to declare the exact ITC amount availed and reverse it fully or partially as needed. This option can also be used:
- Where reversal has already been made earlier.
- Where ITC on the invoice was never availed.
This brings clarity and precision in ITC management, ensuring taxpayers do not reverse more than what was claimed.
3. Option to Save Remarks
A new optional feature allows taxpayers to add and save remarks while marking a record as rejected or pending.
- These remarks will appear in GSTR-2B for the recipient’s reference.
- Suppliers will also be able to see these remarks in their Outward Supplies dashboard, helping them take corrective actions.
This feature will be rolled out shortly and is aimed at improving communication between buyers and suppliers.
Important Dates
- The option to keep records pending and the ITC declaration facility will be effective from the October 2025 tax period.
- The due date for keeping records pending will depend on the date or tax period in which the supplier communicated the document.
The changes will apply only to records filed by suppliers after the production rollout of these updates. Older records will not be covered.
Frequently Asked Questions
When will these changes in the Invoice Management System be effective?
The changes will be effective from the October 2025 tax period.
What records can be kept pending under the new changes?
Taxpayers can keep credit notes, upward amendments of credit notes, downward amendments of credit notes where the original was rejected, and downward amendments of invoices or debit notes and ECO-documents if the original documents have been accepted and GSTR-3B has been filed.
What is the new feature for declaring ITC reduction amount?
The new feature allows taxpayers to declare the exact ITC amount availed and reverse it fully or partially as needed. This is applicable even if the ITC was partially availed or never availed.
Can taxpayers add remarks while marking a record as rejected or pending?
Yes, taxpayers can now add and save remarks while marking a record as rejected or pending. These remarks will appear in GSTR-2B and the supplier's Outward Supplies dashboard.
Will the changes apply to older records?
No, the changes will apply only to records filed by suppliers after the production rollout of these updates. Older records will not be covered.
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