The GST Council, in its upcoming meeting on December 21, is set to deliberate on and is likely to approve rules for the implementation of the Invoice Management System (IMS). It is expected to address fake invoicing and tax evasion under the GST framework, sources in the Council said.

The system, which was rolled out in November, is designed to streamline invoice reporting and enhance compliance through real-time validation and cross-verification.

The IMS will ensure automatic reflection of invoices in relevant GST returns, allowing for real-time cross-verification of supplier data. By identifying mismatches, the system aims to minimise fraudulent input tax credit (ITC) claims, which have been a persistent issue for the GST regime.

Initial system changes enabling IMS were approved by the GST Council in its previous meeting. According to the official, the implementation has been well-received by taxpayers and experts alike.

Source: Money Control