GST Invoice Management System to Include Import Entries from October 2025

The Indian Goods and Services Tax (GST) department has introduced a significant update to its Invoice Management System (IMS), allowing businesses to make entries related to imports. A new section, 'Import of Goods', has been added to the IMS, which will display the Bill of Entry (BoE) filed by taxpayers for imported goods, including those from Special Economic Zones (SEZs). This feature will be operational from the October 2025 tax period.

The primary goal is to simplify the process for GST assessees and ensure accurate Input Tax Credit (ITC) claims. In cases where a Bill of Entry's GST Identification Number (GSTIN) is amended, and ITC was previously availed by the old GSTIN, a reversal of that ITC is required. The updated IMS will facilitate this by showing the entry for ITC reversal to the previous GSTIN. For scenarios where the ITC has already been partially or fully reversed, the system allows the previous GSTIN to declare the specific amount of ITC to be reversed, not exceeding the original BoE value.

If no action is taken by the taxpayer on an individual BoE within IMS, it will be considered 'deemed accepted'. Based on the actions taken, the GST Portal will generate a draft GSTR 2B for the recipient in the following month. It's important to note that direct import-related entries from ICEGATE and DGFT portals, as well as reverse charge entries, will continue to flow directly to Form GSTR 2B and will not be part of the IMS. The IMS itself, introduced in October 2024, is an optional tool for recipient taxpayers to manage inward supplies by accepting, rejecting, or pending supplier records.

Impact: This update is expected to streamline the process of claiming Input Tax Credit on imports, reduce errors in tax filings, and enhance overall compliance for businesses involved in international trade under the GST regime. It provides greater clarity and control over import-related tax liabilities and credits. Rating: 7/10

Difficult terms: GST: Goods and Services Tax, an indirect tax levied on the supply of goods and services in India. Invoice Management System (IMS): A part of the GST portal that helps taxpayers manage invoices related to their inward supplies by allowing them to accept, reject, or keep them pending. Bill of Entry (BoE): A document filed by an importer to customs authorities to declare imported goods and pay applicable duties and taxes. Input Tax Credit (ITC): A credit for tax paid on inputs (purchases) that can be used to offset tax liability on outputs (sales). GSTIN: Goods and Services Tax Identification Number, a unique 15-digit number issued to entities registered under GST. GSTR 2B: An auto-drafted statement generated monthly that provides details of eligible Input Tax Credit for a taxpayer based on information filed by their suppliers. SEZ: Special Economic Zone, an area in a country designated to be an export-oriented zone with different business and tax laws. ICEGATE: Indian Customs Electronic Gateway, an electronic portal for customs-related transactions. DGFT: Directorate General of Foreign Trade, an authority responsible for promoting and regulating foreign trade in India.