If I accidentally Reject an invoice in IMS, will my supplier have to pay extra tax?

No. When your supplier re-reports the exact same invoice via GSTR-1A or the GSTR-1 amendment table, the GST portal calculates a zero delta tax liability. They do not pay additional tax.

How does marking an invoice 'Pending' affect Section 16(2)(b) compliance?

Section 16(2)(b) mandates that ITC can only be claimed after physical receipt of goods. Marking an in-transit invoice as Pending in IMS defers the ITC claim cleanly to the next month when goods actually arrive.

Can I leave a Rejected invoice as 'Rejected' permanently?

Yes, if the supplier bill is completely unauthorized or billed to the wrong GSTIN. However, if it was a valid transaction rejected by mistake, you must ask the supplier to re-report it so you can Accept it and claim ITC.

Is there a time limit for resolving Pending invoices in IMS?

Yes. Under Section 16(4) of the CGST Act, all pending invoices must be accepted and claimed by the 30th of November following the end of the financial year (or filing of the Annual Return).

Handling Rejected & Pending Invoices on IMS Portal (SOP 2026)

Quick Answer: How Should Businesses Handle Rejected & Pending Invoices in IMS?

For Rejected Invoices: Request the supplier to re-report the identical document in GSTR-1A or GSTR-1 Amendment table (zero extra tax delta). Once re-reported, change status to 'Accepted' in IMS. For Pending Invoices: Use Pending status for goods in transit under Section 16(2)(b). Once physical stock arrives, change status to 'Accepted' to release ITC.

Zero Supplier Tax Impact: Re-reporting identical bills creates zero extra tax liability for suppliers.
Section 16(2)(b) Compliance: Prevents premature ITC claims before physical stock receipt.
Statutory Deadline: Pending invoices must be accepted before Nov 30th following the FY end.
Re-compute GSTR-2B: Always trigger GSTR-2B re-computation after resolving rejections.

1. Standard Operating Procedure (SOP) for Rejected Invoices

When a recipient marks a supplier invoice as Rejected in IMS, the tax value is immediately purged from GSTR-2B, preventing any ITC claim in GSTR-3B.

Rejection should be reserved for genuine errors (e.g., invoice issued to wrong GSTIN, duplicate bill number, or incorrect tax rate). If an invoice is rejected by mistake, follow this 4-step recovery protocol:

Step 1: Identify Root Cause of Mismatch

Compare the rejected portal entry against your physical vendor bill, purchase order, and Tally purchase register. Check if the error is on the supplier’s end or a internal clerical mistake.

Step 2: Request Supplier Re-reporting via GSTR-1A or Amendment Table

Ask your supplier to re-furnish the exact same document without altering values. They can do this via GSTR-1A (in the same month) or the Amendment Table in GSTR-1/IFF (in the subsequent month).

💡 Zero Extra Tax Liability Note: Re-reporting an identical document creates a zero delta value. The supplier will NOT pay double tax on the re-reported bill.

Step 3: Accept Re-reported Bill in IMS

Once the supplier re-reports, the document reappears in your IMS dashboard. Change the action status from Rejected to Accepted and click Save Action.

Step 4: Re-compute GSTR-2B

Click Re-compute GSTR-2B on the GST portal (or in Tally Prime) to restore the eligible ITC into your draft GSTR-2B before filing GSTR-3B.

2. Managing Pending Status & Section 16(2)(b) Goods-in-Transit

Under Section 16(2)(b) of the CGST Act, a registered taxpayer is prohibited from claiming Input Tax Credit until the physical goods or services are actually received.

Example Scenario: In-Transit Purchases

Supplier dispatching raw materials from Gujarat on October 28th uploads the invoice in GSTR-1 on November 10th. However, the truck arrives at your factory in Maharashtra on November 16th.

❌ Incorrect Action (Accepting in Oct): Accepting the bill in October IMS violates Section 16(2)(b) because physical goods were not received in October.

✅ Correct Action (Pending in Oct): Mark as Pending in October IMS. Accept it in November IMS when goods arrive at the factory gate.

Eliminate Clerical Purchase Typos in Tally Prime

Ensure physical vendor bills match portal entries 100% every single month.

Unintended IMS rejections occur when data entry clerks accidentally type wrong invoice numbers or incorrect GSTINs into Tally Prime.

TrulyInvoice AI Automation: Upload supplier PDF bills or WhatsApp scans. AI auto-maps stock items, extracts GSTINs and tax amounts, and posts verified F9 Purchase Vouchers directly to Tally Prime in 15 seconds via Port 9000 sync.

3. Summary Checklist for IMS Action Resolution

Validate GRN (Goods Receipt Note)

Always cross-check physical Goods Receipt Notes against IMS entries before selecting Accepted.

Never Ignore Rejected Supplier Notices

Follow up with suppliers immediately upon marking Rejected so amendments occur before the GSTR-1 cutoff.