Handling Inadvertently Rejected Records on IMS | GSTN June 2025 Advisory Summary
1. Availing ITC on Wrongly Rejected Invoices/Debit Notes/ECO Documents
-If a document was wrongly rejected but GSTR-3B was already filed, the recipient should ask the supplier to report the same document again without any changes in:
-GSTR-1A of the same period, or
-Amendment table of a later GSTR-1/IFF
-The recipient must accept the document in IMS and recompute GSTR-2B to claim ITC.
2. Impact on Supplier’s Liability
-If the supplier re-reports the same document (no value change), there is no increase in tax liability, since amendments reflect only the difference.
3. Reversing ITC on Wrongly Rejected Credit Notes
-The recipient should ask the supplier to re-report the same Credit Note in GSTR-1A or amendment table.
-After accepting it in IMS and recomputing GSTR-2B, the ITC will be automatically reduced.
4. Credit Note Re-furnishing and Supplier’s Liability
-When a Credit Note is rejected, supplier’s liability increases temporarily.
-Once the same Credit Note is re-reported, the liability is reduced again, so the net effect is only once.
Summary
-Recipients and suppliers should coordinate if any record is wrongly rejected in IMS.
-Re-furnishing the same document and accepting it ensures correct ITC and liability without duplication.
| Q. No. | Scenario | Action to be Taken | Impact (ITC / Liability) |
|---|---|---|---|
| 1 | Recipient wrongly rejected invoice/debit note/ECO-document in IMS, but already filed GSTR-3B | Recipient should request supplier to report the same record (unchanged) in GSTR-1A of the same period or amendment table of GSTR-1/IFF of a later period. Recipient must accept the amended record on IMS and recompute GSTR-2B | Full ITC will be available again in the GSTR-2B of the tax period where amended document is accepted |
| 2 | Supplier had originally furnished the invoice, but recipient rejected it wrongly | Supplier should re-report the same document (unchanged) via GSTR-1A or amendment table till the due time | Since the amended value = original, supplier’s liability does not increase (delta value is zero) |
| 3 | Recipient wrongly rejected a credit note (CN) in IMS, but GSTR-3B already filed | Recipient should ask supplier to re-report the same CN (unchanged) via GSTR-1A or amendment table. Recipient must accept CN on IMS and recompute GSTR-2B | ITC will be reversed for the full amount of the original CN once accepted and GSTR-2B recomputed |
| 4 | Supplier had issued credit note, but it was rejected by recipient | Initially, liability increases in supplier's GSTR-3B due to CN rejection. But when supplier re-furnishes CN via GSTR-1A or amendment table, liability is reduced again by same value | Net impact on supplier’s liability is zero, since liability added and reduced are of equal value |
To read the detailed advisory and access more official guidance, visit:
https://www.gst.gov.in/newsandupdates/read/613
Disclaimer: This material and the information contained herein is intended for clients and other Chartered Accountants to provide updates and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.
