The body of tax professionals has urged the govt to make the newly introduced Invoice Management System (IMS) in the Goods and Services Tax portal more user-friendly. They suggest allowing options to add and modify invoices before finalising the submission of documents on the portal, a move seen as reducing errors and notices.
Launched in November 2024, the IMS permits recipient taxpayers to accept, reject, or maintain pending status for invoices provided by their suppliers.
The president of the Madhya Pradesh Tax Law Bar Association, said, “The earlier GSTR-2 form allowed users to accept, reject, modify, and add invoices. The current IMS limits them to just three options: accept, reject, and pending. Without the ability to modify and add invoices, users are left at the mercy of suppliers. This not only slows down the process but can lead to practical complications, as we are forced to rely on suppliers’ timelines for invoice corrections.”
The association said this change is vital for reducing invoice errors and minimising the number of notices issued by tax authorities.
Chartered accountants said about 10 per cent of all notices issued by the GST department relate to input tax credit (ITC) issues, indicating a pressing need for better systems to manage these discrepancies.
Experts believe that allowing amendments within the IMS could facilitate improved reconciliation of accounts, thereby decreasing the likelihood of error-related notices.
He said, “Implementing options to modify and add invoices in the IMS will empower taxpayers, enhance compliance, and ultimately lead to a more transparent and efficient tax ecosystem. It is essential for the govt to consider these recommendations to ensure the system meets the needs of its users.”
Tax professionals assert that by better integrating user feedback into the development of the IMS, the GST portal can offer a more efficient and user-friendly experience that ultimately supports compliance and reduces administrative burdens.
Source #TOI
