Accept, Reject or Pending: Handling Purchase Invoices on IMS Every Month
In the Invoice Management System, accepted invoices go into GSTR-2B, rejected ones are left out, and pending ones wait for a later month. Anything left with no action is treated as accepted when GSTR-2B is drafted on the 14th. Since October 2025, credit notes can be kept pending for only one tax period.
The Invoice Management System (IMS) is the screen on the GST portal where every purchase invoice your suppliers report lands before it reaches your GSTR-2B. What you do there decides how much credit you get that month. Many businesses still ignore it, and that is a choice too: anything you leave untouched is treated as accepted.
The four statuses
| Status | What it means | Effect on GSTR-2B |
|---|---|---|
| No action | You have not looked at it | Treated as accepted when GSTR-2B is generated |
| Accept | The invoice is correct and you received the goods or services | Included; credit available |
| Reject | Wrong invoice, wrong amount, or not yours | Excluded; no credit |
| Pending | Not sure yet, for example goods not received | Excluded this month; stays in IMS for a later decision |
The monthly clock
- ✓GSTR-2B is drafted on the 14th of the following month (for quarterly filers, the 14th after the quarter).
- ✓You can still change actions after the 14th, but then you must recompute GSTR-2B before you file GSTR-3B.
- ✓Records you keep pending stay in IMS only until the Section 16(4) time limit. After that they are removed because the credit can no longer be claimed.
Changes from October 2025
GSTN changed IMS from the October 2025 tax period:
- ✓Credit notes can be kept pending for one tax period only, one month or one quarter. The same applies to downward amendments of invoices you had already accepted.
- ✓You can declare the amount of credit to be reduced. If you never claimed the credit on the original invoice, or claimed only part of it, you can say so, instead of reversing the full tax on the credit note.
- ✓You can add remarks when you reject or keep a record pending. Your supplier sees them, so they know what to fix.
This matters because, from 1 October 2025, a supplier's tax is reduced by a credit note only after the buyer reverses the matching credit.
When to choose each action
| Situation | Action |
|---|---|
| Invoice correct, goods received | Accept |
| Invoice raised in error, or the order was cancelled | Reject, with a remark |
| Wrong rate or wrong amount | Reject, with a remark, and ask the supplier for an amendment |
| Goods in transit at month end | Pending |
| Credit note from a supplier you agree with | Accept, and state the credit to be reduced |
| An invoice that is not yours | Reject |
A monthly routine
- On the 12th or 13th, open IMS and filter by "No action".
- Match against your purchase register. Accept what matches.
- Reject or keep pending what does not, always with a remark.
- On the 14th, check the drafted GSTR-2B. If you made changes after it was drafted, recompute it.
- File GSTR-3B using the final GSTR-2B.
- Track pending items in a list and clear them the next month. Credit notes can stay pending for one period only.
A worked example
A Jaipur furniture maker sees 64 records in IMS for August 2026. 58 match the purchase register and are accepted. Two are duplicates and are rejected with the remark "duplicate of invoice 1182". Three shipments are still in transit and are kept pending. One credit note for ₹12,000 tax is accepted, with ₹12,000 declared as the credit to be reduced. GSTR-2B is recomputed and GSTR-3B is filed on the 19th.
Frequently asked questions
Is using IMS compulsory?
Taking action is optional, because untouched records are treated as accepted. But "accepted" includes wrong invoices, so reviewing IMS is the only way to keep wrong credit out of your returns.
What if I rejected an invoice by mistake?
Ask the supplier to report it again through GSTR-1A or the amendment section of their next GSTR-1. It then comes back to IMS for you to accept.
Can quarterly filers use IMS?
Yes. Records are shown for the quarter and GSTR-2B is generated after the quarter ends.
Sources
- ✓Advisory: new changes in IMS, CGST Kochi
- ✓New GST IMS changes, TaxGuru
- ✓FAQs on the Invoice Management System, ClearTax
- ✓CBIC notifies 1 October 2025 for Finance Act 2025 GST provisions, TaxO
This is a summary, not legal advice. Confirm with your chartered accountant before you rely on it.
Written by
Founder, Airwix Technologies (Sleet)
Vatsal Sutariya is the founder of Airwix Technologies in Ahmedabad, the company that builds Sleet: SleetHR for HR and payroll, and Sleet Accounting for GST billing and books. He writes about GST, invoicing, business tax and choosing software for Indian businesses, and checks each rule against the official notification before it is published.
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