New IMS System in GST – Challenges ahead for Businesses

 New IMS System in GST – Challenges ahead for Businesses.

With the implementation of the new Invoice Management System (IMS) under GST, businesses are gearing up for a more automated reconciliation process. While the intent is clear - better accuracy and transparency - the ground-level challenges are already surfacing 

There are many discussions going on that the new procedure will have more impact on Sales transactions and not for ITC.

📍In case of sales transactions, there are only two documents. Invoice and Credit/Debit Notes. 

The only issue we need to focus is that our customers are accepting all our Credit Notes. If they reject our Credit Notes our liability will get increased.

Other than this there are no other big challenge for Sales.

🚚 But in case of Purchase Transactions/ITC availment I feel there are more complex challenges in this new procedure.

Regular Invoices of Goods / Services which populates in IMS can be verified and accepted easily since taxpayers have the data ready.

But some of the peculiar transactions need more efforts to verify and accept in IMS.

🔹 Goods in Transit:

Supplier Invoices get reported even before goods reach the recipient (mostly month end despatches). This requires real time data of actual goods reciept for accepting them in IMS. 

🔹 CHA / Freight Bills:

For those involved in Exports/Imports, they are aware that CHA will be one point biller who collects bills from multiple suppliers for the same shipment. Taxpayers need to track and validate each of such supplier bills in IMS. 

🔹 Reimbursement / Expense Bills:

When employees or branches raise reimbursement claims with GST invoices, matching them in IMS manually poses both compliance and workflow hurdles as these Invoices may not form a part of Regular Purchase register.

🔹 Practical Timelines:

The monthly reconciliation window is short leaving little room to trace, verify, and rectify mismatches before filing deadlines.

💡 The idea is strong, but the system will demand robust internal coordination between accounts, logistics, and procurement teams.

Businesses having high volume of purchase transactions must strengthen invoice tracking, GRN processes, and vendor communication to make IMS work smoothly. Also all bills (Misc services, CHA, Reimbursement..) should be consolidated in a single register from which IMS has to be reconciled. 

In short, the Purchase Bill processing itself to be overhauled completely to have a one data point for ITC bills.

If we wrongly accept an Invoice which is not related to us, then also we will be in trouble. So all Invoice details should be verified and take decisions for Accepting or Pending.

If the Invoice number as per supplier filing and our ITC register mismatches, that also needs to be manually verified to match.

Time consuming and tough job for claiming ITC, but it will definitely maximize ITC and give us clear tracking of Supplier Compliance.