Handling of Inadvertently Rejected Records on IMS: Explained in Simple Terms

Sometimes, things don’t go as planned—especially when it comes to GST filings and the IMS (Invoice Matching System). Let’s break down what happens when invoices, debit notes, or credit notes get wrongly rejected on IMS and how both suppliers and recipients can fix it without losing sleep—or Input Tax Credit (ITC).

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Q1: What if I accidentally rejected an invoice or debit note on IMS, but I already filed GSTR-3B for that period? Can I still claim ITC?

Yes, you can. Here’s what you need to do:

• Ask your supplier to re-report that same invoice, without making any changes, in either:

  • GSTR-1A of the same return period, or
  • The amendment table of a later GSTR-1/IFF (within the allowed time).

• Once that’s done, go to IMS, accept the re-furnished invoice, and recompute your GSTR-2B.

Since the original entry was rejected, you’ll now get ITC for the entire amended value. But remember, you can only claim ITC in the GSTR-2B of the period in which this amended record appears.

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Q2: If I’m the supplier and my invoice was wrongly rejected by the recipient, will re-reporting the same invoice affect my GST liability?

No worries here. If the recipient rejected your valid invoice by mistake and you report it again (unchanged) in either GSTR-1A of the same period or in the amendment table of a future GSTR-1/IFF:

• Your liability will not increase.
• Why? Because amendment tables work on delta values—and since you’re re-reporting the same amount, there’s no difference, so there’s no extra tax liability.

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Q3: I accidentally rejected a Credit Note on IMS but already filed GSTR-3B. How do I reverse ITC?

Here’s your fix:

• Ask your supplier to report the same Credit Note again, without changes, in:

  • GSTR-1A of the same period, or
  • The amendment table of a later GSTR-1/IFF.

• Once it’s reflected on IMS, accept the amended Credit Note and recompute GSTR-2B.

The ITC you claimed earlier will now reduce by the full value of the Credit Note since the original was entirely rejected.

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Q4: As a supplier, what happens to my liability if a Credit Note I filed was rejected by the recipient, and I later re-furnish it?

Initially, yes—your liability will temporarily increase because the Credit Note got rejected by the recipient. But once you re-furnish the same Credit Note (with no changes) in GSTR-1A of the same period or in the amendment table of a later return:

• Your liability gets reduced again by that same amount.

So, in the end, your liability adjusts back and the net effect is neutral—just once.

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These steps help ensure that wrongly rejected records don’t mess up your ITC claims or create extra liability. Communication between recipient and supplier is key, and timely corrections in GSTR-1A or amendment tables can save everyone a lot of trouble.