GSTN Adds ‘Pending’ Option for Credit Notes and ITC Reversal Flexibility in IMS

GSTN Advisory, Dated 17-10-2025

The Goods and Services Tax Network (GSTN) has rolled out a new functionality in the Invoice Management System (IMS) on the GST portal to simplify the handling of Credit Notes and Input Tax Credit (ITC) reversals by taxpayers.

1. New ‘Pending’ Option for Credit Notes

Under the new enhancement, taxpayers can now mark Credit Notes as ‘Pending’ for one tax period within the IMS.

This feature allows taxpayers additional time to review, reconcile, and validate the Credit Notes before taking action on them in the subsequent tax period.

The facility is designed to reduce reconciliation errors and ensure more accurate reporting of transactions in GSTR filings.

2. Enhanced Flexibility in ITC Reversal

The IMS has also been upgraded to provide taxpayers with greater flexibility in modifying their ITC reversal once a Credit Note is accepted.

This enables taxpayers to make necessary adjustments to ITC reversals in alignment with the accepted Credit Notes, ensuring that their ITC records accurately reflect the underlying transactions.

3. Availability of FAQs and Guidance

To assist taxpayers in using the new facility effectively, GSTN has published a set of detailed FAQs.

These FAQs provide guidance on:

• How to mark and manage Credit Notes as ‘Pending’,
• Steps for accepting or rejecting Credit Notes, and
• Procedures for revising ITC reversals after acceptance.

Taxpayers are advised to refer to these resources for a smooth transition to the updated system.

4. Objective of the Enhancement

This enhancement is part of GSTN’s ongoing efforts to:

• Streamline Credit Note management,
• Facilitate accurate ITC reconciliation, and
• Simplify compliance for taxpayers through improved digital tools on the GST portal.

Click Here To Read The Full Update