What is Approved Invoices in IMS Dashboard

The Invoice Management System (IMS) is an essential feature in the GST portal for businesses, accountants, and finance professionals who deal with supplier invoices. It allows its users to carefully review, approve, or reject invoices submitted by suppliers using forms like GSTR-1 and IFF. This system needs active involvement to ensure that invoices are accurate and compliant and that nothing is missed.

This article explains approved invoices in IMS and their impact on GSTR-2B and ITC claims. Read 

What are Approved Invoices in the IMS Dashboard?

'Approved Invoice' means you, as a recipient, have confirmed that an invoice is correct and follows GST rules. When you approve an invoice in the IMS, the information flows in your GSTR-2B report for that month.

How to View Approved Invoices in IMS?

Let's walk through how you can see these approved invoices in the system.

1. First, you must log into the GST portal using your credentials. Once you're in, go to the Invoice Management System (IMS). Navigate through Dashboard > Services > Returns > Invoice Management System (IMS). 
2. When you access the IMS dashboard, go to the Inward Supplies section.
3. You will see all the invoices suppliers have submitted through GSTR-1, GSTR-1A, or IFF categorised into Accepted, Rejected, Pending, and No Action Taken.
4. Now, if you just want to look at the approved ones, click on the Accepted column. It's got links to all the approved invoices. If you've got a lot of invoices, you can use filters and search by GSTIN, invoice date, or invoice number.
5. Once you click on an invoice, it'll show you the details of what actions have been taken on it. If something is wrong or you want to make changes, you can do that, too.

Why does Approving Invoices Matter so much?

When you approve an invoice in the Invoice Management System (IMS), you say, "Yes, this looks good to me." It means you've checked it, and everything seems right. Once approved, the invoice automatically goes into your GSTR-2B report, which you'll need to claim Input Tax Credit (ITC) while filing GSTR-3B.

Let's talk about why approving invoices matters so much. When you approve an invoice (or even when it's automatically approved because you didn't act), it becomes part of your GSTR-2B. That's a big deal because only the invoices appearing in GSTR-2B count for claiming ITC. But here's the catch—if you're not careful and let errors slip through, it could mess up your tax filings. Reviewing everything manually might seem like extra work, but it saves you from more significant problems later. It's all about staying on top of things and avoiding unnecessary headaches!

Example of Approved Invoice in IMS

To give you an idea of what ‘Approved’ invoice in IMS, we are using a scenario where a confectioner orders 50 kg of sugar from a wholesaler. The wholesaler delivers this in 2 sealed packs of 25 kg each. Since pre-packaged sugar packs of 25 kg or more are taxed at 0% GST, the wholesaler correctly raises an invoice with no GST charged and uploads it on the GST portal. The confectioner verifies the invoice details against the goods received—both the quantity and the tax calculation are accurate. The confectioner then accepts the invoice in the IMS without any amendments.

The Invoice Management System (IMS) helps businesses handle GST by reviewing, approving, rejecting, or updating invoices. Approved invoices are key for enabling correct ITC claims. You can update invoice statuses before filing GSTR-3B. Still, if a supplier changes something, approvals get reset, so you'll need to review them again. Acting fast is important because invoices left untouched are automatically accepted. Pending invoices give you some flexibility, but they've got to be sorted out before deadlines. Managing all this right lets businesses claim correct ITC, file correctly, and stay on top of GST rules.

Related Articles:
What is Rejected Invoices in IMS Dashboard?
What are Pending Invoices in the IMS Dashboard?
Exemptions under Invoice Management System (IMS)
FAQs on Invoice Management System (IMS) in GST
Future of GST Compliance with Invoice Management System (IMS)