GSTN Advisory on Re-Reporting Rejected Invoices in IMS

1. Introduction

The Goods and Services Tax Network (GSTN) has released an advisory for taxpayers regarding the handling of inadvertently rejected documents—such as invoices, debit notes, credit notes, and e-commerce operator (ECO) documents—within the Invoice Management System (IMS).

2. Re-Reporting Rejected Documents by Suppliers

In instances where these documents are rejected by the recipient in IMS:

• Suppliers can re-report the same document without making any changes.
• This can be done through Form GSTR-1A of the same period or via the amendment table in a subsequent Form GSTR-1 or IFF.
• Once accepted on IMS, Form GSTR-2B is recomputed, allowing the recipient to:

1. 1. Avail Input Tax Credit (ITC) where eligible, or
   2. Reverse ITC if necessary.

Importantly, the supplier’s tax liability remains unaffected since only the delta (difference) values are captured during the amendment process.

3. Special Case – Credit Notes Rejected After GSTR-3B Filing

When a credit note is rejected post-filing of Form GSTR-3B, an automatic ITC reversal is not possible. In such cases:

• The supplier must re-furnish the same credit note without changes using:

1. 1. Form GSTR-1A for the same period, or
   2. Amendment table of a later GSTR-1/IFF.

• Upon recipient’s acceptance and recomputation of GSTR-2B, the ITC will be:

1. 1. Reduced by the value of the credit note.
   2. The supplier’s outward tax liability—if already increased due to initial rejection—will be adjusted accordingly.

This ensures no net impact on the supplier’s overall tax liability.

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