GSTN Advisory Dated 19.06.2025 Explained: How to Correct Inadvertently Rejected Documents in IMS Without Losing ITC
On June 19, 2025, the GST Network (GSTN) issued Advisory dated 19.06.2025 to address a critical concern raised by taxpayers regarding the inadvertent rejection of valid documents in the Invoice Management System (IMS). The advisory provides a clear mechanism to reclaim Input Tax Credit (ITC) or correct the mismatch in GST filings without any penalty, additional liability, or hassle. This clarification is highly relevant for recipients who mistakenly rejected genuine invoices, and suppliers who need to re-report such documents.
✅ For Recipients (Buyers): How to Rectify Mistakenly Rejected Documents
Many taxpayers have reported situations where
they accidentally rejected genuine invoices, debit notes, or credit notes
from their suppliers while reviewing records in the IMS, even after filing
GSTR-3B. In such cases, the rejected documents do not reflect in GSTR-2B,
thereby preventing the recipient from availing the Input Tax Credit (ITC).
To resolve this, GSTN has allowed suppliers
to re-report the same document—without any changes—in either of the
following ways:
- Using GSTR-1A for
the original period (if applicable),
- Or, by entering the document again in the amendment table of
GSTR-1 or IFF (Invoice Furnishing Facility) for any subsequent period.
Once the supplier re-submits the document, the
recipient (buyer) can re-accept it in IMS. The system will then treat
this document as fresh and valid for that month, allowing the buyer to recompute
GSTR-2B. As a result, the Input Tax Credit can be claimed without issues.
This is a crucial relief for recipients as it ensures that no genuine ITC is lost due to unintentional rejection, and the correction process remains seamless and system-based, without the need for manual correspondence or offline approvals.
✅ For
Suppliers (Sellers): No Additional Liability on Re-Submission
Suppliers are often concerned that
re-reporting a document might lead to additional tax liability or
duplication of outward supplies. The advisory clearly assures that if the document
details remain unchanged, then no extra liability arises upon
re-submission.
This is because the amendment table in
GSTR-1 only considers the differential amount between the original and the
revised document. If the values remain the same, the net effect is zero, and
hence there is no impact on tax dues.
This guidance encourages suppliers to confidently re-declare the original document if their recipient has mistakenly rejected it in IMS. They are not at risk of facing duplicate tax payment or system mismatches, provided the document is accurately re-entered as per the process.
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❗Special
Note on Credit Notes and Reversal of Excess ITC
The advisory also addresses the scenario where
a valid credit note was rejected by the recipient. In such cases, the
recipient may have wrongfully claimed excess ITC, since the reduction in
taxable value was not acknowledged.
To fix this, the supplier should re-report
the credit note through the same amendment mechanism. Once this document is
accepted in the IMS, the recipient’s GSTR-2B will automatically reflect the
reversal, and the ITC that was wrongly claimed earlier will be adjusted
accordingly.
This process ensures that both supplier and recipient stay compliant, with the correct liability/credit being shown in the returns, avoiding future disputes or departmental notices.
🔄 No Penalty, No Duplication: Seamless Correction Mechanism
This advisory introduces a user-friendly
correction mechanism that allows seamless error resolution without any
manual intervention. Whether it’s a supplier needing to re-report or a
recipient reclaiming their missed ITC, the system handles it all in a logical
and traceable way.
Here are the key benefits:
- No financial penalty or
interest for either party.
- No manual rectification required—the
IMS and GSTR-2B systems are fully integrated.
- Suppliers won’t face duplication issues if the document is re-uploaded with identical details.
- Recipients can lawfully reclaim or reverse ITC, maintaining compliance with GST rules.
📌 Conclusion: Stay Alert While Accepting or Rejecting IMS Entries
This advisory serves as a reminder that while
IMS has made GST compliance more structured, users must exercise caution
while rejecting or accepting documents. Any genuine mistake is, however, easily
correctable through system-driven re-reporting, and the process is now
clearly outlined and risk-free.
Businesses and GST professionals are
encouraged to educate their teams handling return filing and invoice
validation, ensuring such mistakes are minimized going forward. At the same
time, this new guideline offers peace of mind by confirming that
inadvertent rejections can be fixed and genuine ITC won’t be lost.