Key GST update on GSTR-2B and IMS modifications effective from 1st October 2025
Amidst multiple misleading social media posts regarding significant changes to the GST return system from 1st October 2025, the Goods and Services Tax Network (GSTN) has released a key clarification.
This advisory seeks to clear up confusion about the Invoice Management System (IMS) and its effects on GSTR-2B, GSTR-3B, and the auto-population of Input Tax Credit (ITC)
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No Modifications to ITC Auto-Population
GSTN has clearly stated that there is no change in the auto-population of Input Tax Credit (ITC) in GST returns.
The process of auto-populating ITC from GSTR-2B to GSTR-3B will function as it always has.
ITC will continue to be auto-filled based on the invoices uploaded by suppliers in their GSTR-1 filings.
The introduction of the Invoice Management System (IMS) does not impact this auto-population process.
👉 In summary: Taxpayers are not required to manually import ITC data — the system will continue fetching it automatically.
GSTR-2B Continues to be Auto-Generated Without Manual Input
GSTN has clarified that GSTR-2B will continue to be auto-generated on the 14th of every month, as is currently the case.
There is no need for taxpayers to manually create or trigger GSTR-2B through the Invoice Management System (IMS).
GSTR-2B will remain an auto-drafted statement, reflecting both eligible and ineligible Input Tax Credit (ITC) based on supplier GSTR-1 filings.
That said, the new IMS will provide taxpayers with enhanced flexibility to manage their invoice data.
🧾 Key actions available in IMS:
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Accept invoices or mark them as pending
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Act on credit notes
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View the reconciliation summary
Even after GSTR-2B is generated, taxpayers can continue to take these actions in IMS until GSTR-3B is filed.
If any updates are made — such as accepting or rejecting invoices or credit notes — GSTR-2B can be regenerated accordingly before submission.
👉 Bottom line: The ITC mechanism remains unchanged, but IMS offers greater control and transparency in handling return data.
New Options for Credit Note Handling Effective October 2025
A major enhancement in Credit Note management will take effect with the introduction of the IMS from the October 2025 tax period.
🧾 Key Highlights:
Greater Control for Recipients:
Recipients will now have the option to keep a credit note or related document in a pending state, rather than being required to act on it immediately.
Flexible ITC Reversal:
Upon accepting a credit note, recipients can choose to reverse Input Tax Credit (ITC) only to the extent that it was actually availed.
This allows for manual adjustment, giving taxpayers more control and precision in calculating ITC.
Purpose of the Change:
This flexibility ensures that recipients don’t have to reverse the entire ITC if only a partial credit was claimed initially.
It helps avoid unnecessary credit loss and better reflects real-world business transactions.
💡 Implications for Taxpayers
✅ No additional effort needed — ITC auto-population and GSTR-2B generation continue unchanged.
✅ Increased flexibility — taxpayers can manage invoices and credit notes in IMS even after GSTR-2B is generated.
✅ Precise credit reversal — recipients can partially reverse ITC based on the actual amount availed.
✅ IMS enhances transparency without adding complexity to the filing process.
Practical Example
Scenario:
You claimed an Input Tax Credit (ITC) of ₹8,000 on an invoice, but later the supplier issued a credit note for ₹2,000.
Previously, there was uncertainty about whether you needed to reverse the entire amount.
Starting October 2025 under IMS:
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You can accept the credit note, and
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Reverse ITC only proportional to the ₹8,000 actually availed — not the full invoice amount.
📢 Essential Insights
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The ITC auto-population process remains unchanged.
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GSTR-2B will continue to be auto-generated on the 14th of each month.
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IMS introduces flexibility to review, adjust, and regenerate ITC details before filing GSTR-3B.
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Credit Note management is enhanced — enabling proportionate ITC reversal and the option to keep notes pending.
🧮 In Conclusion
The GSTN’s latest advisory reassures taxpayers that the core GST return filing process remains the same, despite IMS integration.
IMS is designed to make the process smarter, not harder — by allowing flexibility and transparency in invoice and ITC management.
Taxpayers are advised to continue filing their returns as usual and use the IMS dashboard for better control and reconciliation.
In summary:
“IMS is not a replacement for GST returns — it’s a smarter way to manage them.”