INVOICE MANAGEMENT SYSTEM (IMS) – OFFLINE TOOLNOW LIVE ON THE GST PORTAL

22Apr 2026 by admin

MOHAN & CHANDRASEKHAR

Chartered Accountants

ADVISORY

INVOICE MANAGEMENT SYSTEM (IMS) – OFFLINE TOOL

NOW LIVE ON THE GST PORTAL

1. Background

The Invoice Management System (IMS) was rolled out on the GST Common Portal with effect from the October 2024 tax period. The system enables a recipient taxpayer to take action on each inward invoice uploaded by his supplier through GSTR-1 / GSTR-1A / IFF, by marking the record as Accepted, Rejected, Pending or No Action, before the corresponding input tax credit flows into GSTR-2B and GSTR-3B.

In a further step towards ease of compliance, the Goods and Services Tax Network (GSTN) has, vide advisories dated 21st April 2026 and 23rd April 2026, introduced an Excel-based IMS Offline Tool on the GST Portal. The utility allows taxpayers to take action on both individual and bulk invoices, off-line, and thereafter upload a consolidated JSON file to the portal. This is particularly useful for taxpayers with large volumes of inward supplies where working invoice-by-invoice on the online dashboard is time-consuming.

2. Key Features of the IMS Offline Tool

  • Excel (macro-enabled) based offline utility made available free of cost on the GST Portal.
  • Permits bulk action on inward invoices — Accept, Reject, Pending or No Action — along with remarks, where applicable.
  • Follows the same validations and business rules as the online IMS dashboard; the treatment of invoices remains identical to the portal.
  • Generates a JSON file which can be uploaded back to the portal; records are incrementally added to data already on the portal, and pre-existing records for the same GSTIN are replaced/updated.
  • Error-handling facility — any record rejected during portal validation is captured in an error report, which can be downloaded, corrected in the offline tool and re-uploaded.

3. Step-by-Step Procedure

Step 1 – Download the Offline Tool

  1. Login to the GST Portal at www.gst.gov.in.
  2. Navigate to: Downloads → Offline Tools → IMS Offline Tool.
  3. The tool is downloaded as a ZIP file. Extract it, right-click on file → Properties → ‘Unblock’ the file (under Security), and enable macros before opening the Excel utility.

Step 2 – Download IMS Data from the Portal

  • Navigate to: Services → Returns → Invoice Management System (IMS) Dashboard → Offline.
  • Click ‘Generate JSON File to Download’ and save the JSON file on your system.

Step 3 – Import JSON and Take Action in Offline Tool

  • Open the IMS Offline Tool and click ‘Open Downloaded IMS JSON File’ in the Home sheet.
  • Invoice data is auto-populated across worksheets (B2B, B2BA, B2B-DN, B2B-DNA, B2B-CN, B2B-CNA, ECO, ECO-A, etc.).
  • Mark each record as Accepted / Rejected / Pending / No Action, and add remarks where relevant.
  • Click ‘Validate Sheet’ to validate the data in each worksheet. Any filters applied earlier will be cleared on validation.

Step 4 – Generate and Upload JSON to Portal

  1. Click ‘Generate JSON File to Upload’ in the Home sheet to create the upload JSON.
  2. Login to the GST Portal → Services → Returns → Invoice Management System (IMS) Dashboard → Offline → Upload.
  3. Select the generated JSON file and upload.
  4. If portal validation fails for any record, the status will be shown as ‘Processed with Error’. Download the error report, reopen in offline tool, correct the highlighted errors and upload a fresh JSON.

4. Important Points / Cautions

  • If no change is made to any record after importing the JSON into the offline tool, the generated JSON will be empty — i.e., no action will be recorded on the portal.
  • The offline tool must be run with macros enabled; file should be ‘unblocked’ from its Properties window, failing which the utility will not function.
  • Since uploaded records are incrementally added/replaced for the same GSTIN, it is advisable to take a fresh download of IMS data from the portal immediately before working on the offline tool, to avoid overwriting intervening actions.
  • The offline tool does not relax any statutory rule — the treatment of Accept / Reject / Pending actions continues to be governed by Section 38 and the corresponding IMS framework; recipients must exercise due care while acting in bulk, as a rejected/pending invoice will impact ITC auto-population in GSTR-2B and consequently the eligible credit in GSTR-3B.
  • A record of actions taken (preferably a copy of the uploaded JSON and the validated Excel file) should be preserved internally for audit trail and future reconciliation, particularly in the event of subsequent notices on ITC mismatches.

5. Our View

The IMS Offline Tool is a welcome step, particularly for mid-sized and large taxpayers whose inward supplies run into hundreds or thousands of invoices every month. Working on the online IMS dashboard for such volumes is cumbersome and error-prone; the Excel utility brings in the convenience of bulk action, sort/filter, and re-work through the error-report cycle.

That said, IMS is not a mere housekeeping exercise. Every ‘Reject’ or ‘Pending’ action directly affects the flow of input tax credit into GSTR-2B/3B and, in turn, exposes the recipient to ITC reversals, interest and penal consequences if actions are taken carelessly. We recommend that clients put in place an internal standard operating procedure for IMS action, with dual review (accounts + indirect tax team) before the final JSON is uploaded to the portal.

Our firm would be happy to assist in designing such an SOP, running a one-time hand-holding session on the IMS offline tool for your accounts team, and reviewing bulk IMS actions prior to upload.

For any clarification on the above, kindly write to us at kutty@mohansekhar.in or reach out to your designated engagement partner.

Issued by:

M/s. Mohan & Chandrasekhar

Chartered Accountants

Hosur | Bengaluru | Chennai

Date: 22nd April 2026

Disclaimer:

This Advisory is issued for the information and internal use of clients and associates of M/s. Mohan & Chandrasekhar, Chartered Accountants. It is based on the GSTN advisories dated 21st April 2026 and 23rd April 2026 and reflects our understanding of the position as on the date of issue. It is not, and is not intended to be, legal or professional advice. Readers are advised to consult the firm before acting on the basis of the contents hereof.