October 2025 GST Update: Big Improvements in Invoice Management

Introduction

If you’re a GST-registered business or a compliance professional, you’ll want to pay close attention to the latest updates on the GST portal. The Goods and Services Tax Network (GSTN) has introduced several new features in the Invoice Management System (IMS), effective from the October 2025 tax period. These changes are designed to reduce the compliance burden, improve accuracy in Input Tax Credit (ITC) claims, and enhance communication between buyers and suppliers.

1. Pending Action for Specified Records

Taxpayers now have the flexibility to mark certain records as “Pending” for one tax period:

• Monthly filers → can keep records pending for one month
• Quarterly filers → can keep records pending for one quarter

Records eligible for pending status:

• Credit Notes (CN) or upward amendments of CN
• Downward amendments of CN where the original CN was rejected
• Downward amendments of Invoices or Debit Notes (DN), only if the original invoice was accepted and GSTR-3B filed
• ECO-document amendments where the original was accepted and GSTR-3B filed

Example: If a supplier issues a Credit Note in September, and you need time to reconcile it, you can mark it as pending and resolve it in your October return.

2. Declaring ITC Reduction Amount

Earlier, taxpayers faced confusion when reversing ITC on partially claimed invoices. The new IMS update brings clarity:

• If no ITC was availed, no reversal is required
• If partial ITC was availed, only that portion needs to be reversed

Example: You receive an invoice of ₹1,00,000 with ₹18,000 GST. You claim only ₹10,000 as ITC. If a Credit Note of ₹18,000 is issued, you only need to reverse ₹10,000—not the full amount.

3. Option to Save Remarks

Taxpayers can now add remarks when marking a record as Rejected or Pending. These remarks will:

• Appear in your GSTR-2B
• Be visible to the supplier on their dashboard

Example: If you reject an invoice due to a wrong GSTIN, you can add a remark like: “Wrong GSTIN, please correct.” This helps suppliers take corrective action faster.

Why These Changes Matter

• Improved accuracy in ITC claims
• Better coordination between buyers and suppliers
• Reduced compliance stress for businesses
• More transparency in invoice handling

Final Takeaway

The October 2025 IMS update is a welcome move for businesses looking for flexibility and clarity in GST compliance. Whether you’re managing large volumes of invoices or reconciling credit notes, these changes give you more control and reduce the risk of errors.

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