Regulatory updates - India

On September 23, 2025, the GSTN issued an advisory note announcing new changes to the IMS. The changes are aimed at simplifying the taxation system and reducing the compliance burden on taxpayers.  

The changes announced are: 

• Pending action for specified records: Specified records can be kept in pending status for a limited time. Monthly taxpayers can keep records pending for a month, and quarterly taxpayers for a quarter. The due date for keeping records pending is calculated based on the date or tax period the supplier communicated the documents. 

• Declaring ITC reduction amount: Taxpayers can declare the amount of ITC availed and that needs to be reversed. This facility also allows taxpayers to partially or fully reverse ITC.   

• Option to save remarks: Taxpayers are now able to save remarks when taking rejecting or pending action on records. The remarks will be visible in their GSTR-2B for future reference and to suppliers for corrective action.  

These changes are effective from the October tax period.  

The new feature in the EWB system aims to allow taxpayers in Kerala State to generate EWB for goods covered under Chapter 71.  

The feature excludes the generation of EWB for imitation jewelry and applies only to the intrastate movement of those goods within Kerala.  

For imitation jewelry goods, the taxpayers can continue generating EWB using the usual option in the system. 

The glossary describes what is e.g. an e-invoicing, the Invoice Registration Portal (IRP), the Invoice Reference Number (IRN), the difference between Debit and Credit Note and the e-invoice QR code. The list is broader and explains also the technical matters e.g. JSON format and API connection for e-invoice reporting via IRP.

The guide further explains the details of the e-invoicing processes, as well as what taxpayers are in and out of scope and the document types that must be reported.

The published materials do not introduce any changes to the current system. Instead, they serve as an educational source aimed to help businesses better understand their obligations by getting insights into how the E-Invoicing system operates.

Additionally, earlier on 27 November 2024 the GSTN published an Advisory No. 553 document on the authorized B2B e-invoice verification apps, to ensure that taxpayers have up-to date details regarding the approved apps. These mobile apps will allow buyers to verify the authenticity of an issued invoice, by scanning the respective QR code. This will simplify the invoice verification process, making it convenient for the buyers to verify their documents.