The GSTN has issued an important advisory on June 19, 2025 regarding the handling of invoices or…

The GSTN has issued an important advisory on June 19, 2025 regarding the handling of invoices or credit/debit notes that may have been accidently rejected in the Invoice Matching System (IMS). Key Points: • If you have accidentally rejected a valid invoice or credit/debit note in IMS, you can restore your Input Tax Credit (ITC) by following these steps: 1. Inform your supplier about the rejection. 2. The supplier must re-report the document in their GSTR-1A current month or through the amendment table in next month GSTR 1. 3. The re-reported document will reappear in your IMS dashboard next month. 4. You should then “accept” the document in IMS. 5. After acceptance, your ITC eligibility will be restored in the next GSTR-2B in case you had rejected invoice and supplier re-reported the same.

In case of re-reporting of credit note which was earlier accidently rejected by you, you will now have to reverse ITC by accepting the credit note. • No Additional GST Liability on Supplier for Re-reported Unchanged Documents When a supplier re-furnishes an unchanged invoice which was rejected by customer earlier, no additional tax liability arises on the supplier.

Similarly, when a supplier re-furnishes an unchanged credit note, the tax liability will get added in the month in which customer rejected it and it will get reduced from gst liability upon re-furnishing. If you have any further questions, please let us know. Link of Advisory: https://www.gst.gov.in/newsandupdates/read/613