GST Portal Unveils New IMS Feature for Streamlined Import and ITC Management

Analysis of the New “Import of Goods” Functionality in Invoice Management System (IMS)

1. Context and Legal Background
The introduction of the “Import of Goods” section in the Invoice Management System (IMS) is in line with the broader objectives under the CGST Act, 2017, particularly:

• Section 16 – which allows Input Tax Credit (ITC) to a registered person on goods or services used in the course or furtherance of business.
• Section 17(2) and Rule 36 of CGST Rules, 2017 – which lay down conditions and restrictions for availing ITC.
• Section 68 of the Customs Act, 1962 read with Section 3(7) of the Customs Tariff Act, 1975 – under which IGST is paid on imported goods, and such tax is eligible as ITC under GST law.

2. Key Features of the New Functionality
From October 2025, import-related records (Bills of Entry – BoE) including those from SEZs will be visible to taxpayers in the IMS, allowing them to take action (accept/keep pending). If no action is taken, it will be treated as “deemed accepted.”
Four sub-sections are available:

• IMPG – Import of Goods from overseas
• IMPG (Amendments) – For value or GSTIN changes in BoE
• IMPGSEZ – Imports from SEZ units
• IMPGSEZA (Amendments) – For amendments related to SEZ imports

3. Positive Impact and Advantages

(a) Enhanced Transparency and Data Synchronization

• Real-time reflection of import BoEs in IMS ensures transparency between Customs, ICEGATE, and GST systems, minimizing mismatches between ITC claimed and tax paid on imports.
• It aligns with the Rule 36(4) requirements on valid documentation for ITC, as each BoE can be verified digitally.

(b) Improved ITC Governance

• Import data directly integrated into GSTR-2B generation improves the accuracy of eligible ITC computation.
• The “accept” or “pending” options give control to taxpayers to validate transactions, avoiding inadvertent ITC claims and potential future disputes under Section 73/74 (wrong availment of credit).

(c) Ease of Compliance & Reduced Manual Reconciliation

• Eliminates manual matching of import data from ICEGATE with GSTR-2B.
• Reduces reconciliation errors and compliance costs, promoting ease of doing business.

(d) Strengthened Audit Trail

• The system-generated audit trail ensures transparency for tax authorities and taxpayers during scrutiny under Section 61 or audit under Section 65/66.
• Deemed acceptance rule creates accountability while ensuring compliance timelines are not delayed.

(e) Inclusion of SEZ Transactions

• Inclusion of SEZ imports ensures uniform treatment of cross-border and intra-territorial imports, reinforcing consistency with Section 7(5)(b) of IGST Act, 2017 (import from SEZ treated as inter-State supply).

4. Analysis in Light of Law and Practice
This digital advancement bridges a long-standing gap in GST compliance between domestic and import ITC records. Earlier, ITC on imports was manually taken based on BoE details available on ICEGATE or from CHA records. With the IMS integration, ITC validation is now evidence-backed through system records, as envisaged under Rule 36(2), which requires possession of tax payment documents for credit eligibility.

Moreover, the alignment of Customs BoE data with GSTR-2B generation by the 14th of the next month ensures timely and accurate reporting in GSTR-3B, complying with Rule 61(5) of the CGST Rules.

5. Conclusion
The “Import of Goods” functionality under IMS represents a transformative step in GST compliance. It enhances transparency, reduces ITC disputes, improves reconciliation efficiency, and promotes automation in tax governance. The deemed acceptance mechanism ensures both compliance and flexibility for taxpayers.

In summary, the move strengthens the digital ecosystem envisioned under GST — aligning with the objectives of Sections 16 and 37 read with Rule 59, ensuring ITC is based on authenticated, system-linked data.