Supplier View in IMS Dashboard: Common Errors and Managing Invoice Rejections

The GST portal's new invoice management system offers the recipient and supplier a separate dashboard for checking inward and outward invoices. The supplier view is crucial for checking the status of outward invoices, managing tax liability, and avoiding compliance issues. This article discusses managing invoice rejections and the common errors suppliers make in the supplier view section. 

Supplier role and responsibilities in GST compliance

The supplier's roles and responsibilities are crucial for accurate tax collection, payment, documentation, and GST compliance. Some of those responsibilities are:

• Ensuring accuracy while reporting supply details: A recipient acts on invoices and sales records raised and saved by suppliers in IMS. So, the suppliers must upload invoice data and records accurately in their GSTR-1/1A/IFF. This minimises the chances of rejection or disputes by recipients.
• Monitoring actions taken by recipients: IMS has made monitoring invoice status much more effortless. Once a recipient takes action on an inward invoice, the GST portal automatically reflects the same in the supplier's IMS dashboard under the 'Supplier View' section. It is the suppliers' responsibility to monitor invoice status continuously, especially when looking for rejected invoices. This helps reduce the time needed to take corrective actions for suppliers. 
• Taking prompt corrective actions: Once a rejected invoice is identified, the supplier must determine the reasons behind the rejection and take corrective measures as soon as possible. Suppose the supplier didn't take the corrective steps before the 19th of a month. In that case, the portal adds the rejected invoice's back tax liability to the supplier's GSTR-3B.  

What is the 'supplier view' of IMS?

The Supplier View in the Invoice Management System (IMS) of the GST portal is a section with functionalities that allow taxpayers to check the actions their recipients took on their outward invoices as reported through GSTR-1/1A/IFF. This section is critically important for suppliers to monitor invoice status and resolve discrepancies as soon as recipients reject invoices.   

What does the supplier view consist of?

Once a taxpayer clicks on 'Supplier View,' the GST portal prompts the taxpayer to choose the financial year and return period for which the taxpayer wants to check the status.

The GST portal opens another window with two different tabs.

1. The tab offers a universal view of B2B supplies reported in GSTR-1/1A/IFF.
2. This is on rejected outward invoices on which the taxpayer has yet to take action.  

Under the universal view, all B2B outward invoices for the return period are available in 6 different hyperlinked categories. The taxpayer can enter each category to further search for the invoice/records status. For example, if the taxpayer clicks the '4A, 4B, 6A, 6C - B2B, SEZ, DE Invoice' category, the following window will open with details about all the relevant outward invoices, their status and an option to download the data in the '.excel' format. 

The second tab shows rejected records on which the taxpayer has missed taking action before the 19th of a month or before the generation of GSTR-3B.

Benefits of supplier view of IMS

The 'Supplier View' section streamlines the functionalities a taxpayer requires to monitor recipients' actions on supply invoices/records. The unique benefits of the 'Supplier View' are:

• Better transparency and accountability—'Supplier View' offers real-time functionalities to check recipients' actions on supply records. This holds both parties in a transaction accountable for their roles and responsibilities. 
• Improved accuracy in GSTR-2B—This section enables suppliers to match recipients' expectations regarding invoice data accuracy. It reduces the chances of generating faulty GSTR-2B for recipients.
• Minimal chances of disputes—Accurate and real-time visibility of action status on supply records helps suppliers take corrective measures and address discrepancies promptly, minimising the chances of litigation.

The 'Supplier View' in the IMS dashboard is a correct step toward a more effortless GST documentation process flow and proactive GST compliance. However, to truly leverage the benefits of such automated process flow, taxpayers must also minimise manual reporting errors and omissions at their ends. The effective way out is seamless technology integration in suppliers' business processes.

Related Articles:
What are Pending Invoices in the IMS Dashboard?
What is Rejected Invoices in 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)